Eagle Point Credit (NYSE:ECC) Stock Crosses Below 50-Day Moving Average - Here's Why

Key Points

• Eagle Point Credit shares fell below their 50-day moving average, trading as low as $2.80 and closing at $2.885, well below the $3.67 50-day average and $3.82 200-day average.
• The company’s latest quarterly results missed expectations, with earnings per share of $0.17 versus $0.18 expected and revenue of $37.90 million versus the $41.62 million consensus estimate.
• Eagle Point Credit declared a monthly dividend of $0.06 per share, equivalent to $0.72 annually and a 25% yield, although its payout ratio is elevated at 196.72%.

Eagle Point Credit Company Inc. (NYSE:ECC - Get Free Report) crossed below its fifty day moving average during trading on Tuesday. The stock has a fifty day moving average of $3.67 and traded as low as $2.80. Eagle Point Credit shares last traded at $2.8850, with a volume of 5,507,680 shares trading hands.

Eagle Point Credit Stock Performance

The firm's 50 day moving average is $3.67 and its two-hundred day moving average is $3.82. The stock has a market capitalization of $381.43 million, a PE ratio of 4.73 and a beta of 0.38. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.54 and a current ratio of 0.54.

Eagle Point Credit (NYSE:ECC - Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The investment management company reported $0.17 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.01). The business had revenue of $37.90 million during the quarter, compared to analysts' expectations of $41.62 million. Eagle Point Credit had a negative net margin of 84.29% and a negative return on equity of 1.83%. As a group, research analysts predict that Eagle Point Credit Company Inc. will post 0.68 earnings per share for the current year.

Eagle Point Credit Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Friday, December 11th will be paid a $0.06 dividend. This represents a $0.72 annualized dividend and a dividend yield of 25.0%. The ex-dividend date is Friday, December 11th. Eagle Point Credit's dividend payout ratio (DPR) is presently 196.72%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. CoreCap Advisors LLC boosted its stake in shares of Eagle Point Credit by 80.8% in the 2nd quarter. CoreCap Advisors LLC now owns 6,716 shares of the investment management company's stock valued at $25,000 after buying an additional 3,001 shares during the period. Beacon Pointe Advisors LLC purchased a new stake in shares of Eagle Point Credit during the second quarter worth approximately $37,000. Kingsview Wealth Management LLC purchased a new stake in shares of Eagle Point Credit during the second quarter worth approximately $37,000. Arkadios Wealth Advisors purchased a new stake in shares of Eagle Point Credit during the first quarter worth approximately $38,000. Finally, Tactive Advisors LLC acquired a new stake in Eagle Point Credit in the third quarter valued at approximately $39,000. 19.50% of the stock is currently owned by hedge funds and other institutional investors.

Eagle Point Credit Company Profile

Eagle Point Credit Company Inc NYSE: ECC is a non-diversified closed-end management investment company that focuses primarily on investments in collateralized loan obligations (CLOs). CLOs are investment vehicles that generally hold portfolios of senior secured loans made to companies, with securities issued in different levels of seniority and risk.

The company's portfolio has historically emphasized the equity and junior debt tranches of CLOs, which may provide exposure to income generated by pools of corporate loans.

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