In a report released today, Chris Kotowski from Oppenheimer maintained a Buy rating on Eagle Point Credit Company Inc (NYSE: ECC), with a price target of $20. The company’s shares opened today at $18.38.
Kotowski noted:
“We very much like ECC’s business model; investing in CLO equity is very similar in return to investing in bank equity, except CLO equity is a much more compartmentalized risk in credit. ECC generates strong cash returns in the form of a $2.40/13% annual dividend, but earnings from net investment income have been shy of that due to steadily tightening loan spreads. Yield contraction is mostly out of management’s control, but there are levers management can pull to boost earnings in the long run in the form of CLO portfolio management and prudent balance sheet management. This quarter’s results had some noise related to debt refinancing, but on a core basis showed signs of improvement. We continue to recommend the stock.”
According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 11.1% and a 66.5% success rate. Kotowski covers the Financial sector, focusing on stocks such as Great Elm Capital Corporation, Fidus Investment Corporation, and Solar Senior Capital Ltd.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Eagle Point Credit Company Inc with a $21 average price target.
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The company has a one-year high of $21.60 and a one-year low of $17.28. Currently, Eagle Point Credit Company Inc has an average volume of 100.2K.
Based on the recent corporate insider activity of 8 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ECC in relation to earlier this year.
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