Ellington Financial (NYSE:EFC) Releases Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Ellington Financial (NYSE:EFC) issued its earnings results on Wednesday. The financial services provider reported $0.45 EPS for the quarter, missing the consensus estimate of $0.47 by ($0.02), Zacks reports. Ellington Financial had a return on equity of 16.12% and a net margin of 41.95%. The business had revenue of $117.72 million during the quarter, compared to analyst estimates of $125.83 million.

Ellington Financial Stock Performance

Shares of NYSE:EFC traded down $0.24 during mid-day trading on Friday, reaching $11.25. 1,275,860 shares of the company traded hands, compared to its average volume of 1,620,997. 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 company’s 50 day moving average price is $12.21 and its 200-day moving average price is $12.85. Ellington Financial has a 52 week low of $11.15 and a 52 week high of $14.12. The firm has a market cap of $1.45 billion, a PE ratio of 6.80 and a beta of 1.01.

Ellington Financial Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Monday, November 30th will be issued a dividend of $0.13 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 13.9%. The ex-dividend date of this dividend is Monday, November 30th. Ellington Financial’s dividend payout ratio (DPR) is presently 93.98%.

Trending Headlines about Ellington Financial

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

• Positive Sentiment: JonesTrading lowered its price target to $13 from $14.50 but maintained a Buy rating, implying about 15% upside from the cited $11.30 share price. JonesTrading recommendations
• Positive Sentiment: EFC declared its monthly dividend of $0.13 per share, payable December 31 to holders of record November 30. The annualized payout is $1.56, equivalent to a stated yield of about 13.7% at the referenced share price; the high yield may appeal to income investors, though it does not ensure the payout is sustainable. Dividend announcement
• Neutral Sentiment: A report says Ellington is pursuing growth in non-QM mortgage servicing through an acquisition; the headline points to a potential expansion opportunity, but the supplied details do not quantify its likely financial impact. Non-QM servicing acquisition
• Negative Sentiment: Quarterly adjusted EPS was reported at $0.45, below the $0.47 consensus, while revenue of $117.72 million also trailed estimates of $125.83 million. The earnings release separately reported $0.31 in net income per common share, with $0.47 per share from the investment portfolio segment. The misses may weigh on sentiment despite those segment contributions. Third-quarter results

Wall Street Analysts Forecast Growth

EFC has been the subject of several research reports. Zacks Research cut Ellington Financial from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 13th. Weiss Ratings cut Ellington Financial from a “hold (c)” rating to a “hold (c-)” rating in a report on Thursday, October 8th. JonesTrading dropped their target price on Ellington Financial from $14.50 to $13.00 and set a “buy” rating for the company in a report on Thursday. UBS Group upped their target price on Ellington Financial from $14.00 to $14.50 and gave the stock a “neutral” rating in a research note on Wednesday, August 19th. Finally, Piper Sandler cut their price target on Ellington Financial from $15.00 to $14.00 and set an “overweight” rating on the stock in a research note on Friday, October 9th. Two research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $13.83.

Ellington Financial Company Profile

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.