On Thursday, Keefe, Bruyette & Woods maintained their Market Perform rating and $10.50 price target for Eagle Point Credit Company (NYSE:ECC), following the firm's first-quarter financial results released on May 21. Eagle Point's net investment income (NII) fell short of both the firm's expectations and the consensus. The effective yield on investments also saw a decline, coming in at 16.4%.
Despite the lower yield, Eagle Point Credit Company deployed $131 million of capital during the quarter. The company's net asset value (NAV) experienced a slight decrease of 0.5% in the first quarter of 2024 and continued to decline by 1.9% after the quarter's end, through April. Nevertheless, Eagle Point has maintained its base dividend and declared supplemental distributions through the third quarter of 2024.
The analysts noted that while the cash inflows from Eagle Point's collateralized loan obligations (CLOs) remain robust, adjustments to their forecasts were necessary. The revisions were attributed to modestly lower portfolio yield estimates and anticipated increases in debt costs. Despite these changes, the firm's target price for Eagle Point Credit remains at $10.50.
InvestingPro Insights
Eagle Point Credit Company's commitment to shareholder returns is evident through its significant dividend yield, which stands at a robust 18.7%, as of the latest data. This yield is particularly noteworthy given the company's history of maintaining dividend payments for 11 consecutive years, a testament to its financial resilience and commitment to investors.
The company's market capitalization is currently at $870.93M, with a price-to-earnings (P/E) ratio of 6.72, indicating a potentially attractive valuation for investors seeking income-generating assets. Furthermore, Eagle Point's revenue growth over the last twelve months, as of Q1 2024, shows a healthy increase of 19.78%, which may reassure investors about the company's ability to sustain its financial performance.
For investors looking for additional insights and analysis, there are more InvestingPro Tips available that delve deeper into Eagle Point's financial health, such as its low price volatility and the fact that its liquid assets exceed short-term obligations. To explore these further, consider visiting https://www.investing.com/pro/ECC. And remember, using the coupon code PRONEWS24 can get you an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to even more exclusive financial data and insights.
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