Eagle Point Credit Co Inc. (NYSE:ECC) reported that its CFO/COO, Kenneth Onorio, made a new investment in the company’s stock. On August 13, 2024, Onorio purchased 300 shares of Eagle Point Credit's common stock at an average price of $9.73, totaling $2,919.
The transaction was disclosed in a regulatory filing with the Securities and Exchange Commission (SEC). According to the filing, these shares were bought at prices ranging from $9.72 to $9.73. The shares are held in accounts for the benefit of Onorio's children, with Onorio having investment authority over these accounts. He disclaims beneficial ownership of the shares, except to the extent of his pecuniary interest.
Following the transaction, Onorio's direct holdings in the company increased, reflecting a positive sentiment from one of the company's top executives. The filing also noted that Onorio's total ownership includes shares acquired through the issuer's dividend reinvestment plan.
Investors often look at insider buying as a positive indicator that company executives believe in the firm's future prospects. The purchase by Eagle Point Credit's CFO/COO could be seen as a sign of confidence in the company's value and potential for growth.
Eagle Point Credit Co Inc., based in Greenwich, Connecticut, is known for its involvement in the financial sector, providing investment opportunities in the U.S. credit market.
In other recent news, Eagle Point Credit Co Inc. disclosed its unaudited net asset value (NAV) per share for the month ending July 31, 2024, estimated to be between $8.73 and $8.83. The company also reported a notable increase in recurring cash flows to $71.4 million during its second-quarter earnings call, with over $135 million deployed into new investments. Despite some realized capital losses, the company's net investment income remained positive.
Furthermore, Eagle Point Credit launched a non-traded convertible preferred perpetual stock offering, generating $9 million, and plans to rotate proceeds from CLO BB sales into higher yielding CLO equity. In recent developments, the company has strengthened its balance sheet and expects a strong performance in the second half of the year.
However, Eagle Point Credit reported realized losses of $0.12 per share related to the write-down of two legacy CLO equity positions. The company continues to make strategic investments in primary and secondary CLO equity, while maintaining a robust cash flow from its CLO equity investments, even in the event of defaults. The company's target leverage remains between 25% and 35%, with a focus on maintaining a strong Asset Coverage Ratio.
InvestingPro Insights
Eagle Point Credit Co Inc. (NYSE:ECC) has caught the attention of market watchers not only due to the insider buying activity but also because of its noteworthy financial metrics and dividend policy. With a market capitalization of approximately $946.52 million and a price-to-earnings ratio of 7.85, the company stands out in its valuation compared to peers. This could suggest that the stock is reasonably priced relative to its earnings.
In terms of performance, Eagle Point Credit has experienced substantial revenue growth over the last twelve months as of Q2 2024, with a reported increase of 25.44%. This growth trajectory is further emphasized by a quarterly revenue growth of 33.22% in Q2 2024, indicating significant momentum in the company's financials. The firm's gross profit margin has been remarkably strong, standing at 100% for the same period, which may point to efficient management and a potentially robust business model.
InvestingPro Tips highlight that Eagle Point Credit has been profitable over the last twelve months and has maintained dividend payments for 11 consecutive years, showcasing a commitment to returning value to shareholders. The company's significant dividend yield of 19.83% as of the last dividend date in 2024 is a testament to this commitment. This is a crucial factor for income-focused investors seeking steady cash flow from their investments.
For those interested in a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/ECC. These tips provide insights such as analysts' earnings revisions and the company's stock price volatility, which can further inform investment decisions. Currently, there are 3 more InvestingPro Tips listed for Eagle Point Credit Co Inc. that could provide investors with a more comprehensive understanding of the company's financial health and future prospects.
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