Piper Sandler Has Lowered Expectations for Ellington Credit (NYSE:EARN) Stock Price

Ellington Credit (NYSE:EARN) had its price objective reduced by equities research analysts at Piper Sandler from $5.25 to $5.00 in a note issued to investors on Monday,Benzinga reports. The firm currently has an “overweight” rating on the real estate investment trust’s stock. Piper Sandler’s price target would indicate a potential upside of 13.07% from the company’s previous close.

Separately, Wall Street Zen upgraded shares of Ellington Credit from a “sell” rating to a “hold” rating in a research report on Saturday, April 4th. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $5.50.

Ellington Credit Price Performance

EARN opened at $4.42 on Monday. The firm has a market capitalization of $166.18 million, a P/E ratio of -4.25 and a beta of 1.27. Ellington Credit has a one year low of $4.27 and a one year high of $6.08. The company has a fifty day moving average price of $4.63 and a 200-day moving average price of $4.86.

Ellington Credit (NYSE:EARN) last posted its earnings results on Wednesday, May 20th. The real estate investment trust reported $0.19 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.03). The company had revenue of $9.87 million during the quarter, compared to analyst estimates of $10.57 million.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in EARN. Millennium Management LLC grew its holdings in 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 acquiring an additional 773,169 shares during the last quarter. Jane Street Group LLC raised its stake 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 last quarter. Goldman Sachs Group Inc. boosted 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 worth $686,000 after purchasing an additional 45,845 shares during the period. Osaic Holdings Inc. boosted 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 worth $602,000 after purchasing an additional 39,392 shares during the period. Finally, Envestnet Asset Management Inc. grew its stake in shares of Ellington Credit by 6.5% in the third 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 during the last quarter. 20.40% of the stock is owned by hedge funds and other 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.