Eagle Point Credit (NYSE:ECC) Shares Down 4.8% - Here's Why

Key Points

• Shares of Eagle Point Credit fell 4.8% to $3.865 on Friday, trading as low as $3.88 on sharply reduced volume of about 287,674 shares versus an average of ~2.32 million.
• Analysts have trimmed targets and ratings — B. Riley cut its price target to $4.25 (still a "buy") while Zacks moved to "strong sell"; the consensus is a "Hold" with an average target of $6.67.
• The company declared a monthly dividend of $0.06 (ex-dividend June 10), implying a 18.5% yield, but a dividend payout ratio of 884.21% suggests the payout may be unsustainable.

Eagle Point Credit Company Inc. (NYSE:ECC - Get Free Report) was down 4.8% during trading on Friday . The company traded as low as $3.88 and last traded at $3.8650. Approximately 287,674 shares traded hands during trading, a decline of 88% from the average daily volume of 2,318,963 shares. The stock had previously closed at $4.06.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. B. Riley Financial cut their price target on Eagle Point Credit from $7.00 to $4.25 and set a "buy" rating for the company in a research note on Monday, March 16th. Credit Suisse Group set a $5.00 price target on Eagle Point Credit in a research report on Wednesday, February 18th. LADENBURG THALM/SH SH downgraded Eagle Point Credit from a "buy" rating to a "neutral" rating in a research report on Monday, March 2nd. Finally, Zacks Research downgraded Eagle Point Credit from a "hold" rating to a "strong sell" rating in a research report on Tuesday, March 10th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $6.67.

Eagle Point Credit Stock Performance

The company has a 50-day simple moving average of $4.13 and a 200 day simple moving average of $5.38. The company has a market capitalization of $513.64 million, a P/E ratio of 20.50 and a beta of 0.30.

Eagle Point Credit Dividend Announcement

The company also recently disclosed a monthly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Wednesday, June 10th will be issued a dividend of $0.06 per share. This represents a c) annualized dividend and a dividend yield of 18.5%. The ex-dividend date of this dividend is Wednesday, June 10th. Eagle Point Credit's dividend payout ratio (DPR) is presently 884.21%.

Insider Buying and Selling at Eagle Point Credit

In other news, Portfolio Manager Daniel W. Ko acquired 57,165 shares of the firm's stock in a transaction dated Wednesday, March 18th. The shares were bought at an average price of $3.50 per share, with a total value of $200,077.50. Following the acquisition, the portfolio manager owned 82,665 shares of the company's stock, valued at $289,327.50. This trade represents a 224.18% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.15% of the company's stock.

Institutional Trading of Eagle Point Credit

Several institutional investors have recently modified their holdings of the company. International Assets Investment Management LLC grew its holdings in shares of Eagle Point Credit by 201.8% during the 4th quarter. International Assets Investment Management LLC now owns 1,278,195 shares of the investment management company's stock worth $7,362,000 after purchasing an additional 854,625 shares in the last quarter. PFG Investments LLC grew its holdings in shares of Eagle Point Credit by 2.8% during the 4th quarter. PFG Investments LLC now owns 839,463 shares of the investment management company's stock worth $4,835,000 after purchasing an additional 22,499 shares in the last quarter. North Ground Capital acquired a new stake in shares of Eagle Point Credit during the 3rd quarter worth approximately $4,186,000. Freestone Capital Holdings LLC grew its holdings in shares of Eagle Point Credit by 58.7% during the 4th quarter. Freestone Capital Holdings LLC now owns 528,356 shares of the investment management company's stock worth $3,043,000 after purchasing an additional 195,503 shares in the last quarter. Finally, Jane Street Group LLC boosted its stake in Eagle Point Credit by 167.6% in the 4th quarter. Jane Street Group LLC now owns 460,318 shares of the investment management company's stock valued at $2,651,000 after buying an additional 288,314 shares in the last quarter. Institutional investors and hedge funds own 19.50% of the company's stock.

Eagle Point Credit Company Profile

Eagle Point Credit Company is a closed-end, non-diversified management investment company that seeks to generate attractive risk-adjusted returns primarily through investments in collateralized loan obligations (CLOs) and related structured credit instruments. The firm is externally managed by Eagle Point Credit Management, LLC, a specialized credit asset manager focused on the structured credit markets. Eagle Point Credit Company’s shares trade on the New York Stock Exchange under the ticker symbol ECC.

The company’s investment strategy centers on acquiring both equity and debt tranches of actively managed CLOs alongside opportunistic positions in senior secured loans, high-yield bonds and credit derivatives.

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