A number of firms have modified their ratings and price targets on shares of Eagle Point Credit (NYSE: ECC) recently:

  • 11/20/2017 – Eagle Point Credit had its “buy” rating reaffirmed by analysts at National Securities. They now have a $24.00 price target on the stock. They wrote, “• For 3Q17, ECC posted NII + realized gains (earnings) of $0.45/share, significantly below our estimate of $0.57/share. Despite the pace of spread compression falling, we note that refinance and reset costs incurred by the company have totaled $0.29/share YTD and adversely impacted earnings by $0.10/share for 3Q17.

    • While refinances and reset costs cannot truly be called one-time or “non-recurring” in nature, the amount of this activity since 3Q16 has been substantial as loan markets have ignored reality and remained complacent to the point that merits significant concern, in our opinion. The high yield OAS (option-adjusted spread) on an average quarterly basis declined by only 5 bps for 3Q17, contrasted with 12 bps in 2Q17, 71 bps in 1Q17, and 73 bps in 4Q16. In our opinion, complacency and pricing both loans and equities based upon hopes and dreams is coming to an end.

    • At almost 10 cents cost per quarter to refinance and reset CLOs, ECC could have certainly not done this and saved $0.29/share YTD although this isn’t a straight-forward comparison because the positive yield recalibration on the CLO equity effective yields stemming from refinances would be lost. We think investors are, at their own detriment, neglecting the real economic benefit of extending the reinvestment life by 25% and/or lowering the cost of liabilities on roughly 70% of the debt by 50 bps, in a structure that is generally leveraged 10x.

    • We are fairly confident that the market will have a Pavlovian response to spread widening and dump ECC as NAV goes down due to mark-to-market GAAP accounting, but we want to make a point that the market will literally be selling an asset off as the cash flow expectations of that asset are improving, which we find to be rather nonsensical.

    • We are revising our 2017 NII+realized gains/share estimate to $2.08 from $2.27 and our 2018 NII+realized gains/share estimate to $2.26 from $2.45.”
  • 11/17/2017 – Eagle Point Credit was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Eagle Point Credit Company Inc. is an externally managed closed-end management investment company. Its 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). Eagle Point Credit Company Inc. is based in United States. “
  • 11/15/2017 – Eagle Point Credit had its price target lowered by analysts at CIBC from $24.00 to $20.00. They now have an “outperform” rating on the stock.
  • 11/15/2017 – Eagle Point Credit had its price target lowered by analysts at Oppenheimer Holdings, Inc. from $24.00 to $20.00. They now have an “outperform” rating on the stock.
  • 10/17/2017 – Eagle Point Credit was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Eagle Point Credit Company Inc. is an externally managed closed-end management investment company. Its 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). Eagle Point Credit Company Inc. is based in United States. “

Eagle Point Credit Company Inc. (NYSE ECC) opened at $19.15 on Monday. The company has a market capitalization of $353.78, a P/E ratio of 9.82 and a beta of 0.30. The company has a debt-to-equity ratio of 0.18, a current ratio of 3.25 and a quick ratio of 3.25. Eagle Point Credit Company Inc. has a 12-month low of $16.70 and a 12-month high of $22.11.

The business also recently disclosed a monthly dividend, which will be paid on Thursday, November 30th. Investors of record on Friday, November 10th will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Thursday, November 9th. This represents a $2.40 dividend on an annualized basis and a yield of 12.53%.

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 primarily invests in equity and junior debt tranches of collateralized loan obligations (CLOs) that are collateralized by a portfolio consisting primarily of the below investment grade United States senior secured loans.

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