National Securities restated their buy rating on shares of Eagle Point Credit Co. (NYSE:ECC) in a research report sent to investors on Monday morning. They currently have a $24.00 target price on the investment management company’s stock.
“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. ,” the firm’s analyst commented.
A number of other equities analysts have also recently weighed in on the company. Compass Point upped their price target on Eagle Point Credit from $15.00 to $17.00 and gave the stock a neutral rating in a report on Thursday, August 25th. Zacks Investment Research cut Eagle Point Credit from a hold rating to a sell rating in a report on Monday, August 29th. Finally, Deutsche Bank AG upped their price target on Eagle Point Credit from $18.50 to $19.00 and gave the stock a buy rating in a report on Thursday, August 25th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and three have assigned a buy rating to the company. Eagle Point Credit has a consensus rating of Hold and an average target price of C$19.25.
Eagle Point Credit (NYSE:ECC) opened at 16.8001 on Monday. Eagle Point Credit has a one year low of $13.30 and a one year high of $19.15. The stock has a 50 day moving average price of $17.33 and a 200-day moving average price of $17.10.
Eagle Point Credit (NYSE:ECC) last issued its earnings results on Wednesday, August 24th. The investment management company reported $0.57 EPS for the quarter, missing analysts’ consensus estimates of $0.59 by $0.02. Equities analysts expect that Eagle Point Credit will post $2.33 earnings per share for the current 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 dividend of $0.60 per share. The ex-dividend date of this dividend is Wednesday, September 28th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 14.29%. Eagle Point Credit’s payout ratio is currently -120.60%.
In other news, CFO Kenneth P. Onorio bought 1,726 shares of Eagle Point Credit stock in a transaction on Monday, August 29th. The stock was acquired at an average price of C$17.47 per share, with a total value of C$30,153.22. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.65% of the company’s stock.
Several institutional investors have recently made changes to their positions in ECC. National Asset Management Inc. purchased a new position in shares of Eagle Point Credit during the second quarter worth approximately $261,000. Bard Associates Inc. boosted its position in shares of 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 worth $1,815,000 after buying an additional 334 shares during the last quarter. Mycio Wealth Partners LLC boosted its position in shares of 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 worth $22,198,000 after buying an additional 6,590 shares during the last quarter. Freestone Capital Holdings LLC bought a new stake in Eagle Point Credit during the second quarter worth about $2,174,000. Finally, 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 worth $139,000 after buying an additional 2,959 shares during the period. 70.31% of the stock is owned by institutional investors and hedge funds.
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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