Ellington Credit (NYSE:EARN) Stock Crosses Below Two Hundred Day Moving Average – Here’s Why

Ellington Credit Company (NYSE:EARN) crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $5.03 and traded as low as $4.86. Ellington Credit shares last traded at $4.9330, with a volume of 312,331 shares changing hands.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the stock. Piper Sandler decreased their price target on shares of Ellington Credit from $6.00 to $5.50 and set an “overweight” rating for the company in a report on Friday, March 6th. Wall Street Zen raised shares of Ellington Credit from a “sell” rating to a “hold” rating in a report on Saturday, April 4th. One analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $5.75.

Ellington Credit Stock Performance

The business’s 50 day simple moving average is $4.65 and its 200-day simple moving average is $5.02. The stock has a market capitalization of $178.69 million, a price-to-earnings ratio of -4.57 and a beta of 1.27.

Ellington Credit (NYSE:EARN) last posted its earnings results on Wednesday, May 20th. The real estate investment trust reported $0.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.03). The firm had revenue of $9.87 million for the quarter, compared to analyst estimates of $10.57 million. Ellington Credit had a negative net margin of 75.00% and a positive return on equity of 16.47%.

Ellington Credit Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Friday, May 29th will be paid a dividend of $0.08 per share. This represents a c) dividend on an annualized basis and a yield of 20.2%. The ex-dividend date of this dividend is Friday, May 29th. Ellington Credit’s payout ratio is presently -92.31%.

Institutional Trading of Ellington Credit

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Envestnet Asset Management Inc. raised its holdings in shares of Ellington Credit by 6.5% in the 3rd quarter. Envestnet Asset Management Inc. now owns 76,237 shares of the real estate investment trust’s stock worth $415,000 after purchasing an additional 4,675 shares in the last quarter. McIlrath & Eck LLC raised its holdings in shares of Ellington Credit by 122.4% in the 1st quarter. McIlrath & Eck LLC now owns 10,969 shares of the real estate investment trust’s stock worth $49,000 after purchasing an additional 6,038 shares in the last quarter. Virtu Financial LLC bought a new stake in shares of Ellington Credit in the 4th quarter worth approximately $57,000. Quadrature Capital Ltd bought a new stake in shares of Ellington Credit in the 4th quarter worth approximately $75,000. Finally, Engineers Gate Manager LP bought a new stake in shares of Ellington Credit in the 2nd quarter worth approximately $83,000. 20.40% of the stock is currently owned by institutional investors.

About Ellington Credit

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.