Eagle Point Credit (NYSE:ECC) Announces Earnings Results, Misses Expectations By $0.01 EPS

Eagle Point Credit (NYSE:ECC) released its quarterly earnings results on Thursday. The investment management company reported $0.17 EPS for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.01), Zacks reports. Eagle Point Credit had a negative return on equity of 1.09% and a negative net margin of 87.16%.

Here are the key takeaways from Eagle Point Credit’s conference call:

• NAV rebounded 8% to $4.51 per share in the second quarter, generating a 12.7% GAAP return on common equity as loan prices and CLO equity valuations recovered. The company paid $0.18 per share in quarterly distributions and maintained its $0.06 monthly distribution for the remainder of 2026.
• Management completed eight CLO resets and seven refinancings, reducing debt costs by an average of 22 basis points and extending reinvestment periods. It also deployed $111 million into new investments at a 24.6% weighted average effective yield, while loan spread compression appeared to be moderating.
• The portfolio’s credit metrics remained stronger than market averages, with CCC-rated exposure of 3.8% versus 4.6% and a junior over-collateralization cushion of 4.4% versus 3.8%. Look-through default exposure was only 14 basis points, while non-CLO investments rose to 38% of the portfolio, adding diversification.
• Leverage stood at 47% of total assets, above the company’s 27.5%–37.5% target range, and management plans to reduce it over time without setting a firm deadline. July month-end NAV was estimated at $4.33–$4.43 per share, implying a 3% decline from quarter-end, while NII less realized investment losses was negative $0.62 per share due largely to portfolio repositioning.

Eagle Point Credit Trading Up 1.7%

ECC stock traded up $0.07 during trading on Thursday, hitting $3.88. 908,778 shares of the company traded hands, compared to its average volume of 1,590,426. The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.23 and a current ratio of 0.23. The company has a 50-day moving average of $3.79 and a 200-day moving average of $4.05. The firm has a market capitalization of $513.64 million, a PE ratio of 5.80 and a beta of 0.36. Eagle Point Credit has a 1 year low of $3.46 and a 1 year high of $7.77.

Analysts Set New Price Targets

ECC has been the topic of a number of research analyst reports. Alliance Global Partners reissued a “buy” rating on shares of Eagle Point Credit in a research note on Wednesday, April 15th. Zacks Research upgraded Eagle Point Credit from a “strong sell” rating to a “hold” rating in a report on Friday, May 1st. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $6.50.

Institutional Investors Weigh In On Eagle Point Credit

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Geneos Wealth Management Inc. purchased a new stake in Eagle Point Credit during the 2nd quarter valued at $33,000. Royal Bank of Canada increased its position in shares of Eagle Point Credit by 135.5% in the fourth quarter. Royal Bank of Canada now owns 5,600 shares of the investment management company’s stock valued at $32,000 after acquiring an additional 3,222 shares during the period. TCTC Holdings LLC raised its stake in shares of Eagle Point Credit by 45.5% during the fourth quarter. TCTC Holdings LLC now owns 8,000 shares of the investment management company’s stock valued at $46,000 after acquiring an additional 2,500 shares during the last quarter. Tower Research Capital LLC TRC purchased a new stake in shares of Eagle Point Credit during the second quarter worth about $65,000. Finally, Abel Hall LLC bought a new stake in shares of Eagle Point Credit in the third quarter worth about $66,000. 19.50% of the stock is currently owned by institutional investors.

Eagle Point Credit Company Profile

Eagle Point Credit Company is a closed-end, non-diversified management investment company that seeks to generate attractive risk-adjusted returns primarily through investments in collateralized loan obligations (CLOs) and related structured credit instruments. The firm is externally managed by Eagle Point Credit Management, LLC, a specialized credit asset manager focused on the structured credit markets. Eagle Point Credit Company’s shares trade on the New York Stock Exchange under the ticker symbol ECC.

The company’s investment strategy centers on acquiring both equity and debt tranches of actively managed CLOs alongside opportunistic positions in senior secured loans, high-yield bonds and credit derivatives.