Eagle Point Credit (NYSE:ECC) Sees Unusually-High Trading Volume – Should You Buy?

Eagle Point Credit Company Inc. (NYSE:ECC) saw strong trading volume on Tuesday . 1,515,996 shares were traded during mid-day trading, an increase of 41% from the previous session’s volume of 1,075,041 shares.The stock last traded at $7.32 and had previously closed at $6.94.

Wall Street Analyst Weigh In

Separately, B. Riley reduced their price target on shares of Eagle Point Credit from $12.00 to $11.00 and set a “buy” rating on the stock in a research report on Tuesday, January 7th.

Eagle Point Credit Trading Up 6.5 %

The stock has a market cap of $568.65 million, a P/E ratio of 8.80 and a beta of 0.35. The company has a debt-to-equity ratio of 0.18, a quick ratio of 2.27 and a current ratio of 2.27. The stock’s fifty day moving average is $8.24 and its 200 day moving average is $8.89.

Eagle Point Credit (NYSE:ECC) last issued its quarterly earnings data on Thursday, February 20th. The investment management company reported $0.27 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.01). The company had revenue of $49.55 million for the quarter, compared to analysts’ expectations of $49.76 million. Eagle Point Credit had a net margin of 44.67% and a return on equity of 12.53%. As a group, equities research analysts predict that Eagle Point Credit Company Inc. will post 1.1 earnings per share for the current fiscal year.

Eagle Point Credit Dividend Announcement

The company also recently disclosed a dividend, which will be paid on Wednesday, April 30th. Shareholders of record on Thursday, April 10th will be paid a dividend of $0.14 per share. The ex-dividend date is Thursday, April 10th. Eagle Point Credit’s payout ratio is 200.00%.

Insider Activity

In other news, CEO Thomas P. Majewski purchased 1,087 shares of the company’s stock in a transaction that occurred on Friday, March 21st. The stock was purchased at an average cost of $23.00 per share, with a total value of $25,001.00. Following the purchase, the chief executive officer now owns 1,087 shares in the company, valued at approximately $25,001. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.22% of the company’s stock.

Institutional Trading of Eagle Point Credit

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Legacy Investment Solutions LLC grew its stake in shares of Eagle Point Credit by 20,306.0% during the fourth quarter. Legacy Investment Solutions LLC now owns 847,871 shares of the investment management company’s stock valued at $7,580,000 after buying an additional 843,716 shares during the last quarter. Raymond James Financial Inc. purchased a new position in Eagle Point Credit during the 4th quarter valued at $2,038,000. Money Concepts Capital Corp bought a new position in Eagle Point Credit in the 4th quarter valued at $1,696,000. Balboa Wealth Partners purchased a new stake in Eagle Point Credit in the fourth quarter worth $839,000. Finally, Wedbush Securities Inc. lifted its position in shares of Eagle Point Credit by 17.0% during the fourth quarter. Wedbush Securities Inc. now owns 567,610 shares of the investment management company’s stock worth $5,040,000 after purchasing an additional 82,367 shares during the last quarter. 19.50% of the stock is owned by hedge funds and other institutional investors.

About Eagle Point Credit

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.