National Securities reiterated their buy rating on shares of EAGLE POINT Cr/COM (NYSE:ECC) in a report issued on Thursday morning. The brokerage currently has a $24.00 target price on the investment management company’s stock.
“ For 2Q18 ECC earned NII+realized gains (earnings) per share of $0.34 versus our estimate of $0.35. The earnings were lower due to the $0.20/share impact of the issuance of the ECCX notes (with debt issuance costs being recognized up-front as opposed to amortized over the expected life) as well as the costs associated with the redemption of ECCZ notes.
During 2Q18, the company completed eight resets and one refinance and incurred $0.14/share of costs associated with these. Management noted on the earnings call that the portfolio still has a good deal of 2016 vintage CLO equity that has not yet been refinanced. Given spreads were much wider in 2016 relative to currently, the liability stack of these CLOs can likely be refinanced on highly favorable terms. On average, we would expect these positions to have AAA tranches refinanced down to L + 115 bps from L + 160 bps.
The refinances should serve to further boost the effective yield of the CLO equity book but we also expect spreads to widen in 2019. This would have the effect of hitting NAV/share but also boosting earnings materially as the underlying economics of CLO equity greatly improve with loan market dislocation courtesy of a revolving pool of assets and locked in liabilities.
We are encouraged by some spread widening seen in the BSL market and lenders pushing back on terms somewhat. While this has been brief and less-than-substantial we think there has been an immense amount of foolish behavior in the credit markets that will likely reverse rather sharply and we think this is the start of something more pronounced.
We are revising our 2018 NII+realized gains/share estimate to $1.88 from $1.96 and our 2019 NII+realized gains/share estimate to $2.23 from $2.27. We are maintaining our BUY rating and our $24 price target.,” the firm’s analyst wrote.
Separately, ValuEngine cut EAGLE POINT Cr/COM from a hold rating to a sell rating in a research report on Thursday, June 7th. One investment analyst has rated the stock with a sell rating, one has given a hold rating and four have assigned a buy rating to the company’s stock. The stock currently has an average rating of Buy and a consensus price target of $21.13.
ECC opened at $18.29 on Thursday. EAGLE POINT Cr/COM has a 12-month low of $17.28 and a 12-month high of $21.60. The company has a market capitalization of $346.09 million, a PE ratio of 9.73 and a beta of 0.19.
EAGLE POINT Cr/COM (NYSE:ECC) last released its quarterly earnings data on Thursday, May 17th. The investment management company reported $0.50 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.45 by $0.05. EAGLE POINT Cr/COM had a return on equity of 10.44% and a net margin of 58.09%. The company had revenue of $17.01 million during the quarter, compared to analysts’ expectations of $17.80 million. sell-side analysts anticipate that EAGLE POINT Cr/COM will post 1.67 EPS for the current year.
The firm also recently disclosed a monthly dividend, which will be paid on Friday, August 31st. Stockholders of record on Monday, August 13th will be given a $0.20 dividend. The ex-dividend date is Friday, August 10th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 13.12%. EAGLE POINT Cr/COM’s payout ratio is 127.66%.
In other EAGLE POINT Cr/COM news, insider Daniel M. Spinner acquired 75,000 shares of the business’s stock in a transaction dated Tuesday, May 22nd. The stock was bought at an average cost of $73,933.00 per share, with a total value of $5,544,975,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Thomas P. Majewski acquired 50,000 shares of the business’s stock in a transaction dated Thursday, May 24th. The stock was acquired at an average cost of $49,500.00 per share, with a total value of $2,475,000,000.00. The disclosure for this purchase can be found here. Company insiders own 0.49% of the company’s stock.
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Commonwealth Equity Services LLC bought a new position in shares of EAGLE POINT Cr/COM during the second quarter worth approximately $183,000. Oppenheimer & Co. Inc. bought a new position in shares of EAGLE POINT Cr/COM during the first quarter worth approximately $191,000. Centaurus Financial Inc. bought a new position in shares of EAGLE POINT Cr/COM during the second quarter worth approximately $208,000. Citigroup Inc. increased its stake in shares of EAGLE POINT Cr/COM by 341.4% during the first quarter. Citigroup Inc. now owns 13,242 shares of the investment management company’s stock worth $240,000 after purchasing an additional 10,242 shares during the period. Finally, Millennium Management LLC bought a new position in shares of EAGLE POINT Cr/COM during the first quarter worth approximately $399,000. 44.89% of the stock is owned by institutional investors.
EAGLE POINT Cr/COM Company Profile
Eagle Point Credit Company Inc is a closed ended fund launched and managed by Eagle Point Credit Management LLC. It invests in fixed income markets of the United States. The fund invests equity and junior debt tranches of collateralized loan obligations consisting primarily of below investment grade U.S.
Featured Story: Find a Trading Strategy That Works
Receive News & Ratings for EAGLE POINT Cr/COM Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for EAGLE POINT Cr/COM and related companies with MarketBeat.com's FREE daily email newsletter.