Ellington Credit (NYSE:EARN) Stock Passes Below Two Hundred Day Moving Average – What’s Next?

Ellington Credit Company (NYSE:EARN) shares passed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $4.91 and traded as low as $4.38. Ellington Credit shares last traded at $4.4060, with a volume of 640,796 shares traded.

Wall Street Analyst Weigh In

A number of research firms have commented on EARN. Wall Street Zen upgraded Ellington Credit from a “sell” rating to a “hold” rating in a research report on Saturday, April 4th. Piper Sandler lowered their price objective on Ellington Credit from $6.00 to $5.50 and set an “overweight” rating for the company in a research report on Friday, March 6th. One investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat, Ellington Credit has an average rating of “Moderate Buy” and an average target price of $5.75.

Ellington Credit Trading Down 0.3%

The stock’s 50-day moving average price is $4.67 and its 200-day moving average price is $4.90. The stock has a market cap of $164.04 million, a price-to-earnings ratio of -4.20 and a beta of 1.27.

Ellington Credit (NYSE:EARN) last posted its quarterly earnings data on Wednesday, May 20th. The real estate investment trust reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.03). The firm had revenue of $9.87 million for the quarter, compared to the consensus estimate of $10.57 million.

Ellington Credit Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Friday, July 31st. Shareholders of record on Tuesday, June 30th will be given a dividend of $0.08 per share. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a c) dividend on an annualized basis and a yield of 22.0%. Ellington Credit’s dividend payout ratio is -92.31%.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in EARN. Millennium Management LLC boosted its position in shares of Ellington Credit by 485.8% during the 1st quarter. Millennium Management LLC now owns 932,326 shares of the real estate investment trust’s stock valued at $5,044,000 after purchasing an additional 773,169 shares in the last quarter. Jane Street Group LLC increased its holdings in Ellington Credit by 415.4% in the first quarter. Jane Street Group LLC now owns 379,906 shares of the real estate investment trust’s stock worth $2,055,000 after purchasing an additional 306,192 shares in the last quarter. Clear Harbor Asset Management LLC increased its holdings in Ellington Credit by 7.3% in the fourth quarter. Clear Harbor Asset Management LLC now owns 347,635 shares of the real estate investment trust’s stock worth $1,832,000 after purchasing an additional 23,775 shares in the last quarter. Waverly Advisors LLC lifted its stake in Ellington Credit by 85.8% in the first quarter. Waverly Advisors LLC now owns 167,250 shares of the real estate investment trust’s stock valued at $741,000 after buying an additional 77,250 shares during the period. Finally, Goldman Sachs Group Inc. lifted its stake in Ellington Credit by 56.6% in the first quarter. Goldman Sachs Group Inc. now owns 126,864 shares of the real estate investment trust’s stock valued at $686,000 after buying an additional 45,845 shares during the period. 20.40% of the stock is 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.