Eagle Point Credit (NYSE:ECC) Trading 9% Higher - Still a Buy?

Key Points

• Eagle Point Credit's stock surged by 9%, trading at $6.82, with an increase in trading volume by 17% compared to the average daily volume.
• Analysts have set a price target of $7.50 for the stock, with forecasts suggesting the company will report 1.1 earnings per share for the current fiscal year.
• The company announced a dividend of $0.14 per share, with an astonishing yield of 2,438.0%, although it currently faces a negative payout ratio of -420.00%.

Eagle Point Credit Company Inc. (NYSE:ECC - Get Free Report)'s share price was up 9% during mid-day trading on Tuesday . The stock traded as high as $6.75 and last traded at $6.82. Approximately 1,700,645 shares changed hands during mid-day trading, an increase of 17% from the average daily volume of 1,449,051 shares. The stock had previously closed at $6.25.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on ECC. Credit Suisse Group set a $7.50 price target on Eagle Point Credit in a research report on Thursday, May 29th. Keefe, Bruyette & Woods lowered their target price on Eagle Point Credit from $9.00 to $7.50 and set a "market perform" rating on the stock in a research note on Thursday, May 29th.

Eagle Point Credit Trading Up 9.7%

The company has a debt-to-equity ratio of 0.32, a current ratio of 2.23 and a quick ratio of 2.23. The business's 50 day simple moving average is $7.38 and its 200 day simple moving average is $7.84. The stock has a market cap of $527.49 million, a P/E ratio of -17.14 and a beta of 0.38.

Eagle Point Credit (NYSE:ECC - Get Free Report) last issued its quarterly earnings data on Tuesday, August 12th. The investment management company reported $0.23 earnings per share for the quarter, missing the consensus estimate of $0.25 by ($0.02). Eagle Point Credit had a positive return on equity of 12.90% and a negative net margin of 27.15%. On average, analysts expect that Eagle Point Credit Company Inc. will post 1.1 earnings per share for the current fiscal year.

Eagle Point Credit Announces Dividend

The company also recently disclosed a dividend, which will be paid on Friday, August 29th. Shareholders of record on Tuesday, August 12th will be issued a dividend of $0.14 per share. The ex-dividend date of this dividend is Monday, August 11th. This represents a yield of 2,438.0%. Eagle Point Credit's dividend payout ratio is currently -420.00%.

Institutional Investors Weigh In On Eagle Point Credit

Institutional investors and hedge funds have recently modified their holdings of the business. Wedbush Securities Inc. grew its holdings in shares of Eagle Point Credit by 31.3% in the 1st quarter. Wedbush Securities Inc. now owns 745,271 shares of the investment management company's stock valued at $6,037,000 after buying an additional 177,661 shares during the period. Global Assets Advisory LLC acquired a new position in Eagle Point Credit in the first quarter valued at about $844,000. PFG Investments LLC increased its holdings in shares of Eagle Point Credit by 10.7% in the first quarter. PFG Investments LLC now owns 685,957 shares of the investment management company's stock worth $5,556,000 after acquiring an additional 66,558 shares in the last quarter. Cambridge Investment Research Advisors Inc. raised its position in shares of Eagle Point Credit by 5.2% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 89,746 shares of the investment management company's stock worth $727,000 after purchasing an additional 4,423 shares during the period. Finally, J.W. Cole Advisors Inc. raised its position in shares of Eagle Point Credit by 75.6% during the first quarter. J.W. Cole Advisors Inc. now owns 266,515 shares of the investment management company's stock worth $2,159,000 after purchasing an additional 114,706 shares during the period. 19.50% of the stock is owned by institutional investors.

About Eagle Point Credit

Eagle Point Credit Company Inc is a closed ended fund launched and managed by Eagle Point Credit Management LLC. It invests in fixed income markets of the United States. The fund invests equity and junior debt tranches of collateralized loan obligations consisting primarily of below investment grade U.S.

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