Ellington Credit (NYSE:EARN) Releases Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Ellington Credit (NYSE:EARN) posted its quarterly earnings results on Tuesday. The real estate investment trust reported $0.19 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.03), Zacks reports. Ellington Credit had a negative net margin of 34.31% and a positive return on equity of 16.47%.

Ellington Credit Stock Down 2.4%

Ellington Credit stock traded down $0.12 during trading hours on Tuesday, hitting $4.65. 334,467 shares of the company traded hands, compared to its average volume of 459,581. Ellington Credit has a 1-year low of $4.27 and a 1-year high of $6.08. The firm has a market cap of $174.57 million, a P/E ratio of -11.33 and a beta of 1.27. The firm’s 50-day simple moving average is $4.61 and its two-hundred day simple moving average is $5.04.

Ellington Credit Announces Dividend

The business 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. The ex-dividend date of this dividend is Friday, May 29th. This represents a c) annualized dividend and a yield of 20.7%. Ellington Credit’s dividend payout ratio (DPR) is presently -234.15%.

Wall Street Analysts Forecast Growth

EARN has been the subject of several research reports. Wall Street Zen raised shares of Ellington Credit from a “sell” rating to a “hold” rating in a report on Saturday, April 4th. 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. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $5.75.

Institutional Trading of Ellington Credit

A number of hedge funds and other institutional investors have recently made changes to their positions in EARN. Virtu Financial LLC bought a new stake in shares of Ellington Credit during the 4th quarter worth about $57,000. Quadrature Capital Ltd bought a new stake in shares of Ellington Credit during the 4th quarter worth about $75,000. Engineers Gate Manager LP bought a new stake in shares of Ellington Credit during the 2nd quarter worth about $83,000. Vident Advisory LLC raised its position in shares of Ellington Credit by 109.1% during the 2nd quarter. Vident Advisory LLC now owns 36,350 shares of the real estate investment trust’s stock worth $209,000 after buying an additional 18,967 shares in the last quarter. Finally, HighTower Advisors LLC bought a new stake in shares of Ellington Credit during the 4th quarter worth about $369,000. 20.40% of the stock is currently owned by institutional investors.

Ellington Credit Company Profile

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.