Ellington Credit (NYSE:EARN) Posts Earnings Results

Ellington Credit (NYSE:EARN) released its quarterly earnings results on Tuesday. The real estate investment trust reported $0.19 EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.03), Zacks reports. Ellington Credit had a positive return on equity of 16.47% and a negative net margin of 34.31%.

Ellington Credit Trading Down 2.4%

Shares of NYSE EARN traded down $0.12 during midday trading on Tuesday, reaching $4.65. The company’s stock had a trading volume of 334,467 shares, compared to its average volume of 459,581. The company has a 50 day moving average price of $4.61 and a 200 day moving average price of $5.04. Ellington Credit has a one year low of $4.27 and a one year high of $6.08. The company has a market cap of $174.57 million, a price-to-earnings ratio of -11.33 and a beta of 1.27.

Ellington Credit Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, May 29th will be issued a $0.08 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 20.7%. The ex-dividend date is Friday, May 29th. Ellington Credit’s payout ratio is presently -234.15%.

Analysts Set New Price Targets

A number of research firms have commented on EARN. Piper Sandler dropped their price target on shares of Ellington Credit from $6.00 to $5.50 and set an “overweight” rating on the stock in a research report on Friday, March 6th. Wall Street Zen upgraded shares of Ellington Credit from a “sell” rating to a “hold” rating in a report on Saturday, April 4th. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $5.75.

Institutional Trading of Ellington Credit

Hedge funds and other institutional investors have recently made changes to their positions in the business. Millennium Management LLC raised its holdings in shares of Ellington Credit by 485.8% in the 1st quarter. Millennium Management LLC now owns 932,326 shares of the real estate investment trust’s stock worth $5,044,000 after purchasing an additional 773,169 shares in the last quarter. Jane Street Group LLC raised its holdings in shares of Ellington Credit by 415.4% during the first quarter. Jane Street Group LLC now owns 379,906 shares of the real estate investment trust’s stock valued at $2,055,000 after acquiring an additional 306,192 shares during the period. Goldman Sachs Group Inc. raised its holdings in shares of Ellington Credit by 56.6% during the first quarter. Goldman Sachs Group Inc. now owns 126,864 shares of the real estate investment trust’s stock valued at $686,000 after acquiring an additional 45,845 shares during the period. Osaic Holdings Inc. raised its holdings in shares of Ellington Credit by 60.3% during the second quarter. Osaic Holdings Inc. now owns 104,689 shares of the real estate investment trust’s stock valued at $602,000 after acquiring an additional 39,392 shares during the period. Finally, Envestnet Asset Management Inc. raised its holdings in shares of Ellington Credit by 6.5% during the third quarter. Envestnet Asset Management Inc. now owns 76,237 shares of the real estate investment trust’s stock valued at $415,000 after acquiring an additional 4,675 shares during the period. 20.40% of the stock is currently owned by institutional investors.

Ellington Credit Company Profile

Ellington Credit Income Fund (NYSE: EARN) is a closed-end management investment company that seeks to generate current income through a diversified portfolio of mortgage- and asset-backed securities. The fund primarily invests in residential mortgage-backed securities (RMBS) and asset-backed securities (ABS), with additional exposure to commercial mortgage-backed securities (CMBS) and related structured credit instruments. To enhance income and manage risk, the fund employs leverage and derivative strategies such as interest rate swaps and credit default swaps, allowing it to adjust duration and credit exposure dynamically.

The fund is externally managed and advised by Ellington Management Group, LLC, an established investment firm specializing in mortgage credit and structured products.