Eagle Point Credit (NYSE:ECC) Share Price Crosses Below 50-Day Moving Average – Here’s Why

Eagle Point Credit Company Inc. (NYSE:ECC) shares passed below its 50-day moving average during trading on Tuesday. The stock has a 50-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 changing hands.

Wall Street Analyst Weigh In

Separately, Credit Suisse Group set a $3.25 price objective on shares of Eagle Point Credit in a research report on Thursday. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, Eagle Point Credit currently has a consensus rating of “Moderate Buy” and a consensus price target of $3.75.

Eagle Point Credit Stock Performance

The stock’s 50-day moving average is $3.63 and its 200 day moving average is $3.81. The stock has a market cap of $388.04 million, a price-to-earnings ratio of 2.79 and a beta of 0.38. The company has a debt-to-equity ratio of 0.03, a current ratio of 0.54 and a quick ratio of 0.54.

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

Eagle Point Credit Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Thursday, December 31st. Investors of record on Friday, December 11th will be paid a $0.06 dividend. The ex-dividend date is Friday, December 11th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 24.5%. Eagle Point Credit’s payout ratio is 183.61%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of ECC. Legacy Wealth Managment LLC ID increased its holdings in shares of Eagle Point Credit by 2.2% in the 1st quarter. Legacy Wealth Managment LLC ID now owns 575,559 shares of the investment management company’s stock valued at $2,164,000 after purchasing an additional 12,253 shares in the last quarter. BI Asset Management Fondsmaeglerselskab A S lifted its stake in shares of Eagle Point Credit by 3.3% in the first quarter. BI Asset Management Fondsmaeglerselskab A S now owns 255,535 shares of the investment management company’s stock valued at $961,000 after purchasing an additional 8,178 shares during the period. Cetera Investment Advisers lifted its stake in shares of Eagle Point Credit by 21.4% in the first quarter. Cetera Investment Advisers now owns 142,565 shares of the investment management company’s stock valued at $536,000 after purchasing an additional 25,155 shares during the period. Keudell Morrison Wealth Management purchased a new stake in Eagle Point Credit during the first quarter worth about $270,000. Finally, PNC Financial Services Group Inc. boosted its holdings in Eagle Point Credit by 3,944.6% during the first quarter. PNC Financial Services Group Inc. now owns 56,624 shares of the investment management company’s stock worth $213,000 after buying an additional 55,224 shares in the last quarter. Institutional investors and hedge funds own 19.50% of the company’s stock.

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.