Eagle Point Credit Co. LLC: A Closer Look at ECC Perpetual Preferred Stock

Eagle Point Credit Co LLC (NYSE:ECC) is a CLO stock that has gained popularity among retail investors. Despite high fees, ECC continues to attract attention, thanks to its attractive yields and relatively low volatility. The company recently announced that it is buying ECC perpetual preferred stock again, which is expected to benefit investors.

Eagle Point Credit Co LLC (NYSE: ECC), a closed-end fund investing in fixed income markets, has garnered attention from retail investors despite its high fees. The company's attractive yields and relatively low volatility have contributed to its popularity. Recently, Freestone Capital Holdings LLC increased its stake in ECC, reflecting growing interest in the company. According to its 13F filing with the SEC, Freestone Capital Holdings LLC increased its holdings by 57.9% during the first quarter, owning 350,614 shares of ECC [1].

Several other institutional investors have also boosted their positions in ECC. Wedbush Securities Inc. increased its stake by 31.3%, Money Concepts Capital Corp by 61.3%, and J.W. Cole Advisors Inc. by 75.6% in the first quarter. These increases suggest that ECC's investment strategy and performance are drawing significant interest from the market [1].

ECC recently announced a monthly dividend of $0.14 per share, with an annualized yield of 25.1%, reflecting a substantial payout ratio of 1,527.27% [1]. The company's strong dividend payouts have been a key factor in attracting investors, particularly those seeking high-yield opportunities.

In addition to the dividend announcement, ECC has been proactive in managing its capital structure. The company recently announced plans to buy back ECC perpetual preferred stock, which is expected to benefit investors by reducing the company's debt-to-equity ratio and potentially enhancing its financial flexibility [1].

ECC's recent performance has been mixed. The stock has traded up 1.8% during mid-day trading on July 2, 2025, reaching $7.0050. However, the stock's 50-day and 200-day simple moving averages are $7.21 and $7.73, respectively, indicating a slight downward trend. The company's 1-year low of $6.00 and 1-year high of $10.06 provide context for its current valuation [1].

Wall Street analysts have mixed views on ECC's stock. Keefe, Bruyette & Woods decreased its price target to $7.50, while LADENBURG THALM/SH set a "strong-buy" rating. Credit Suisse Group also set a $7.50 target price. Overall, the consensus rating is "Buy" with an average target price of $8.67 [1].

In conclusion, Eagle Point Credit Co LLC's recent stake increases and dividend announcement reflect growing investor interest in the company. While the stock's performance has been mixed, its attractive yields and low volatility continue to draw attention from retail investors. ECC's proactive capital management and strong dividend payouts are key factors contributing to its popularity.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-freestone-capital-holdings-llc-has-284-million-stake-in-eagle-point-credit-company-inc-ecc-2025-08-18/