Ellington Credit (NYSE:EARN) Share Price Crosses Below 200-Day Moving Average – Should You Sell?

Ellington Credit Company (NYSE:EARN)’s share price passed below its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $4.41 and traded as low as $3.51. Ellington Credit shares last traded at $3.5650, with a volume of 306,751 shares.

Analyst Ratings Changes

Separately, Piper Sandler decreased their price objective on shares of Ellington Credit from $5.00 to $4.50 and set an “overweight” rating for the company in a report on Monday. One research analyst has rated the stock with a Buy rating. Based on data from MarketBeat, the stock presently has an average rating of “Buy” and an average target price of $5.25.

Ellington Credit Stock Performance

The company’s 50-day moving average price is $4.07 and its 200 day moving average price is $4.39. The stock has a market cap of $136.46 million, a PE ratio of -3.65 and a beta of 1.32.

Ellington Credit (NYSE:EARN) last posted its quarterly earnings data on Wednesday, August 12th. The real estate investment trust reported $0.15 EPS for the quarter, missing the consensus estimate of $0.20 by ($0.05). The firm had revenue of $6.08 million during the quarter, compared to analysts’ expectations of $10.57 million.

Ellington Credit Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Monday, November 30th. Stockholders of record on Friday, October 30th will be paid a $0.08 dividend. This represents a $0.96 annualized dividend and a dividend yield of 26.9%. The ex-dividend date of this dividend is Friday, October 30th. Ellington Credit’s dividend payout ratio (DPR) is presently -97.96%.

Hedge Funds Weigh In On Ellington Credit

Hedge funds have recently added to or reduced their stakes in the stock. McIlrath & Eck LLC boosted its stake in shares of Ellington Credit by 122.4% during the first quarter. McIlrath & Eck LLC now owns 10,969 shares of the real estate investment trust’s stock valued at $49,000 after purchasing an additional 6,038 shares in the last quarter. World Investment Advisors purchased a new position in Ellington Credit in the fourth quarter valued at $115,000. Focus Financial Network Inc. purchased a new stake in Ellington Credit in the 2nd quarter worth $154,000. Finally, Waverly Advisors LLC boosted its stake in shares of Ellington Credit by 85.8% in the first quarter. Waverly Advisors LLC now owns 167,250 shares of the real estate investment trust’s stock worth $741,000 after acquiring an additional 77,250 shares during the last quarter. 20.40% of the stock is currently owned by institutional investors.

About Ellington Credit

Ellington Credit Company (NYSE: EARN) is a real estate investment trust focused on the residential mortgage market. The company invests in residential mortgage assets, including residential mortgage-backed securities and residential mortgage loans, with an emphasis on assets that generate income from housing-related credit and financing activities.

Its portfolio may include agency and non-agency mortgage-backed securities, as well as other residential mortgage investments. Agency securities are generally backed or guaranteed by U.S.