Eagle Point Credit (NYSE:ECC) Issues Earnings Results, Misses Expectations By $0.01 EPS

Eagle Point Credit (NYSE:ECC) announced its quarterly earnings data on Thursday. The investment management company reported $0.17 earnings per share for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.01), Zacks reports. Eagle Point Credit had a negative net margin of 87.16% and a negative return on equity of 1.09%.

Here are the key takeaways from Eagle Point Credit’s conference call:

• NAV rebounded 8% to $4.51 per share in the second quarter, generating a 12.7% GAAP return on common equity as loan prices and CLO equity valuations recovered. The company paid $0.18 per share in quarterly distributions and maintained its $0.06 monthly distribution for the remainder of 2026.
• Management completed eight CLO resets and seven refinancings, reducing debt costs by an average of 22 basis points and extending reinvestment periods. It also deployed $111 million into new investments at a 24.6% weighted average effective yield, while loan spread compression appeared to be moderating.
• The portfolio’s credit metrics remained stronger than market averages, with CCC-rated exposure of 3.8% versus 4.6% and a junior over-collateralization cushion of 4.4% versus 3.8%. Look-through default exposure was only 14 basis points, while non-CLO investments rose to 38% of the portfolio, adding diversification.
• Leverage stood at 47% of total assets, above the company’s 27.5%–37.5% target range, and management plans to reduce it over time without setting a firm deadline. July month-end NAV was estimated at $4.33–$4.43 per share, implying a 3% decline from quarter-end, while NII less realized investment losses was negative $0.62 per share due largely to portfolio repositioning.

Eagle Point Credit Price Performance

ECC stock traded up $0.07 during trading on Thursday, hitting $3.90. The stock had a trading volume of 917,028 shares, compared to its average volume of 1,590,450. The stock has a market cap of $514.96 million, a price-to-earnings ratio of 5.80 and a beta of 0.36. The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.23 and a current ratio of 0.23. The company’s 50 day moving average price is $3.79 and its two-hundred day moving average price is $4.05. Eagle Point Credit has a 1-year low of $3.46 and a 1-year high of $7.77.

Institutional Investors Weigh In On Eagle Point Credit

Hedge funds and other institutional investors have recently modified their holdings of the company. Royal Bank of Canada grew its stake in Eagle Point Credit by 135.5% in the 4th quarter. Royal Bank of Canada now owns 5,600 shares of the investment management company’s stock worth $32,000 after acquiring an additional 3,222 shares during the period. Geneos Wealth Management Inc. purchased a new position in shares of Eagle Point Credit during the 2nd quarter worth $33,000. TCTC Holdings LLC grew its position in shares of Eagle Point Credit by 45.5% in the fourth quarter. TCTC Holdings LLC now owns 8,000 shares of the investment management company’s stock valued at $46,000 after purchasing an additional 2,500 shares during the period. Tower Research Capital LLC TRC acquired a new position in Eagle Point Credit in the second quarter valued at $65,000. Finally, Abel Hall LLC acquired a new position in Eagle Point Credit in the third quarter valued at $66,000. 19.50% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

ECC has been the subject of a number of research analyst reports. Zacks Research upgraded shares of Eagle Point Credit from a “strong sell” rating to a “hold” rating in a report on Friday, May 1st. Alliance Global Partners reissued a “buy” rating on shares of Eagle Point Credit in a report on Wednesday, April 15th. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $6.50.

About Eagle Point Credit

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.