Ellington Financial (NYSE:EFC) Reaches New 12-Month Low on Analyst Downgrade

Shares of Ellington Financial Inc. (NYSE:EFC) reached a new 52-week low during mid-day trading on Friday after JonesTrading lowered their price target on the stock from $14.50 to $13.00. JonesTrading currently has a buy rating on the stock. Ellington Financial traded as low as $11.15 and last traded at $11.3130, with a volume of 191,603 shares trading hands. The stock had previously closed at $11.49.

Several other brokerages also recently issued reports on EFC. Zacks Research downgraded Ellington Financial from a “strong-buy” rating to a “hold” rating in a report on Monday, July 13th. Piper Sandler lowered their price target on Ellington Financial from $15.00 to $14.00 and set an “overweight” rating for the company in a research report on Friday, October 9th. UBS Group raised their price objective on Ellington Financial from $14.00 to $14.50 and gave the company a “neutral” rating in a research note on Wednesday, August 19th. Finally, Weiss Ratings downgraded shares of Ellington Financial from a “hold (c)” rating to a “hold (c-)” rating in a report on Thursday, October 8th. Two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $13.83.

Key Stories Impacting Ellington Financial

Here are the key news stories impacting Ellington Financial this week:

• Positive Sentiment: The company declared a monthly dividend of $0.13 per share, payable December 31 to holders of record November 30. That equals $1.56 annualized, or about a 13.6% yield at the cited share price, and may appeal to income-focused investors. Dividend announcement
• Positive Sentiment: JonesTrading cut its price target from $14.50 to $13.00 but maintained a Buy rating, implying 13.1% upside from $11.49. The lower target is a headwind, though the continued Buy stance is supportive. JonesTrading recommendations
• Neutral Sentiment: Ellington is looking to expand non-QM mortgage servicing through a recent acquisition. The reported strategic direction could create growth opportunities, but the article details provided do not quantify the expected impact. Non-QM servicing growth
• Negative Sentiment: Q3 results fell short of analyst expectations: earnings were reported at $0.45 per share versus a $0.47 consensus, while revenue of $117.72 million trailed the $125.83 million estimate. The earnings release also reported $0.31 of net income per common share. The misses may be contributing to pressure on the stock. Q3 2026 results

Institutional Investors Weigh In On Ellington Financial

Several large investors have recently added to or reduced their stakes in EFC. MCF Advisors LLC purchased a new position in shares of Ellington Financial in the second quarter worth about $25,000. Continuum Advisory LLC bought a new stake in shares of Ellington Financial during the second quarter valued at about $28,000. Farther Finance Advisors LLC increased its position in shares of Ellington Financial by 287.6% during the third quarter. Farther Finance Advisors LLC now owns 2,566 shares of the financial services provider’s stock valued at $30,000 after buying an additional 1,904 shares during the period. Integrated Wealth Concepts LLC purchased a new stake in shares of Ellington Financial in the second quarter worth about $41,000. Finally, TOP Private Wealth LLC. purchased a new stake in shares of Ellington Financial in the second quarter worth about $64,000. Hedge funds and other institutional investors own 55.62% of the company’s stock.

Ellington Financial Stock Performance

The stock has a market capitalization of $1.48 billion, a PE ratio of 6.91 and a beta of 1.01. The company has a debt-to-equity ratio of 10.39, a current ratio of 52.06 and a quick ratio of 52.06. The business’s fifty day moving average price is $12.21 and its 200-day moving average price is $12.85.

Ellington Financial (NYSE:EFC) last issued its quarterly earnings data on Wednesday, November 4th. The financial services provider reported $0.45 EPS for the quarter, missing the consensus estimate of $0.47 by ($0.02). The firm had revenue of $117.72 million for the quarter, compared to analysts’ expectations of $125.83 million. Ellington Financial had a net margin of 41.95% and a return on equity of 16.12%. As a group, equities research analysts expect that Ellington Financial Inc. will post 2.13 EPS for the current year.

Ellington Financial Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Monday, November 30th will be issued a $0.13 dividend. This represents a $1.56 annualized dividend and a yield of 13.6%. The ex-dividend date of this dividend is Monday, November 30th. Ellington Financial’s dividend payout ratio (DPR) is presently 93.98%.

About Ellington Financial

Ellington Financial Inc is a real estate investment trust (REIT) that acquires, invests in and manages a portfolio of mortgage-related and other financial assets. The company focuses primarily on residential and commercial mortgage loans, mortgage-backed securities and related investments.

Its investment activities may include agency and non-agency residential mortgage-backed securities, commercial mortgage-backed securities, residential and commercial mortgage loans, mortgage servicing rights and consumer loans.