Eagle Point Credit Co. (ECC) Stock Rating Reaffirmed by National Securities
Eagle Point Credit Co. (NYSE:ECC)‘s stock had its “buy” rating reaffirmed by equities research analysts at National Securities in a note issued to investors on Monday. They currently have a $24.00 price target on the investment management company’s stock.
The analysts wrote, “The Preferred Offering: Eagle Point Credit Company (ECC) issued 1.2 million shares of its Series B preferred stock with a 7.75% coupon with 180,000 shares of overallotment, which we anticipate will be taken up in full. This would equate to gross proceeds of $34.5 million and net proceeds of $33.0 million, by our estimates. After a net common stock offering of $20.7 million and a $25.0 million debt offering in 2Q16, we think that this offering in 4Q16 bodes well for the pipeline of opportunities. Seeing as the volatility in the first half of the year permitted ECC to make highly accretive secondary market purchases with effective yields north of 35%, we expect that the 4Q16 preferred raise will likely be used by ECC to structure its own transactions and earn fee rebates – the bread and butter of its business model. ECC’s NAV/share estimate as of 8/31/16 was $16.72, up 15.6% from $14.46 as of 6/30/16. The strong rebound in loan prices and CLO equity will likely drive a $34.3 million of unrealized appreciation during the quarter. We expect that the company will increase its total portfolio at par to $609.9 million in 4Q16 and $712.1 million in 4Q17 from $441.4 million as of 6/30/16. We model debt + preferred to total assets to finish 2016 at 31.0% and 2017 at 27.4%, from 27.7% in 2Q16. We are adjusting our 2016 NII/share from $2.39 to $2.38 and our 2017 NII/share estimate from $2.61 to $2.64. Our $24 price target implies an estimated 2017 Price/Net Investment Income (P/ NII) of 9.1x, dividend yield of 10.0%, and Price/Net Asset Value (P/NAV) of 1.40x. “
Several other research analysts have also recently issued reports on the company. Zacks Investment Research cut Eagle Point Credit from a “hold” rating to a “sell” rating in a research report on Monday, August 29th. Deutsche Bank AG increased their price objective on Eagle Point Credit from $18.50 to $19.00 and gave the stock a “buy” rating in a research report on Thursday, August 25th. Finally, Compass Point increased their price objective on Eagle Point Credit from $15.00 to $17.00 and gave the stock a “neutral” rating in a research report on Thursday, August 25th. One research analyst has rated the stock with a sell rating, two have given a hold rating and three have assigned a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus price target of C$19.25.
Shares of Eagle Point Credit (NYSE:ECC) opened at 16.92 on Monday. The firm’s 50 day moving average is $17.38 and its 200 day moving average is $17.10. Eagle Point Credit has a 52-week low of $13.30 and a 52-week high of $19.22.
Eagle Point Credit (NYSE:ECC) last released its quarterly earnings results on Wednesday, August 24th. The investment management company reported $0.57 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.59 by $0.02. Equities analysts anticipate that Eagle Point Credit will post $2.33 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Monday, October 31st. Shareholders of record on Friday, September 30th will be issued a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 14.16%. The ex-dividend date is Wednesday, September 28th. Eagle Point Credit’s dividend payout ratio (DPR) is -120.60%.
In other news, CFO Kenneth P. Onorio bought 1,696 shares of the stock in a transaction on Thursday, September 1st. The shares were bought at an average price of C$17.75 per share, with a total value of C$30,104.00. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.65% of the stock is owned by company insiders.
Hedge funds have recently bought and sold shares of the stock. Freestone Capital Holdings LLC purchased a new stake in Eagle Point Credit during the second quarter valued at $2,174,000. National Asset Management Inc. purchased a new stake in Eagle Point Credit during the second quarter valued at $261,000. Mycio Wealth Partners LLC raised its stake in Eagle Point Credit by 0.5% in the second quarter. Mycio Wealth Partners LLC now owns 1,378,743 shares of the investment management company’s stock valued at $22,198,000 after buying an additional 6,590 shares during the period. Bessemer Group Inc. raised its stake in Eagle Point Credit by 54.1% in the first quarter. Bessemer Group Inc. now owns 8,427 shares of the investment management company’s stock valued at $139,000 after buying an additional 2,959 shares during the period. Finally, Bard Associates Inc. raised its stake in Eagle Point Credit by 0.3% in the second quarter. Bard Associates Inc. now owns 112,704 shares of the investment management company’s stock valued at $1,815,000 after buying an additional 334 shares during the period. 70.31% of the stock is currently owned by institutional investors.
About Eagle Point Credit
Eagle Point Credit Company Inc is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation. The Company invests primarily in equity and junior debt tranches of collateralized loan obligations (CLOs).
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