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

Ellington Credit Company (NYSE:EARN)’s share price crossed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $5.20 and traded as low as $4.39. Ellington Credit shares last traded at $4.4250, with a volume of 434,675 shares changing hands.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on EARN. UBS Group set a $6.00 target price on Ellington Credit in a research report on Tuesday, December 23rd. Wall Street Zen cut shares of Ellington Credit from a “hold” rating to a “sell” rating in a research note on Saturday, March 14th. Finally, Piper Sandler dropped their price objective on shares of Ellington Credit from $6.00 to $5.50 and set an “overweight” rating on the stock in a report on Friday, March 6th. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $5.75.

Ellington Credit Stock Down 0.1%

The company has a fifty day simple moving average of $4.94 and a 200-day simple moving average of $5.20. The firm has a market cap of $171.13 million, a P/E ratio of -11.11 and a beta of 1.29.

Ellington Credit (NYSE:EARN) last posted its quarterly earnings data on Wednesday, March 4th. The real estate investment trust reported $0.21 EPS for the quarter, missing the consensus estimate of $0.24 by ($0.03). Ellington Credit had a positive return on equity of 16.47% and a negative net margin of 34.31%.The company had revenue of $11.12 million during the quarter, compared to the consensus estimate of $12.71 million. As a group, research analysts forecast that Ellington Credit Company will post 1.17 EPS for the current year.

Ellington Credit Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Tuesday, March 31st will be issued a dividend of $0.08 per share. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a c) annualized dividend and a yield of 21.1%. Ellington Credit’s payout ratio is currently -234.15%.

Institutional Trading of Ellington Credit

Several institutional investors and hedge funds have recently modified their holdings of the company. Millennium Management LLC grew its position in shares of Ellington Credit by 485.8% during the first quarter. Millennium Management LLC now owns 932,326 shares of the real estate investment trust’s stock worth $5,044,000 after purchasing an additional 773,169 shares in the last quarter. Jane Street Group LLC raised its stake in Ellington Credit by 415.4% during the 1st quarter. Jane Street Group LLC now owns 379,906 shares of the real estate investment trust’s stock valued at $2,055,000 after purchasing an additional 306,192 shares during the period. HighTower Advisors LLC purchased a new position in Ellington Credit in the 4th quarter worth approximately $369,000. Goldman Sachs Group Inc. boosted its stake in Ellington Credit by 56.6% in the 1st 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. Finally, Osaic Holdings Inc. boosted its stake in Ellington Credit by 60.3% in the 2nd 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. 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.