Ellington Credit (NYSE:EARN) Issues Earnings Results, Misses Expectations By $0.03 EPS

Ellington Credit (NYSE:EARN) issued its earnings results on Tuesday. The real estate investment trust reported $0.19 EPS for the quarter, missing analysts’ consensus estimates 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 Performance

Shares of NYSE EARN opened at $4.65 on Wednesday. Ellington Credit has a fifty-two week low of $4.27 and a fifty-two week high of $6.08. The stock has a market cap of $174.56 million, a price-to-earnings ratio of -11.33 and a beta of 1.27. The firm’s 50-day simple moving average is $4.61 and its 200 day simple moving average is $5.04.

Ellington Credit Announces Dividend

The firm also recently declared a monthly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, May 29th will be given a $0.08 dividend. 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%.

Analyst Upgrades and Downgrades

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

Hedge Funds Weigh In On Ellington Credit

Several large investors have recently added to or reduced their stakes in EARN. Millennium Management LLC lifted 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 worth $5,044,000 after buying an additional 773,169 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in shares of Ellington Credit by 56.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 126,864 shares of the real estate investment trust’s stock worth $686,000 after buying an additional 45,845 shares in the last quarter. Jane Street Group LLC lifted its position in shares of 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 worth $2,055,000 after buying an additional 306,192 shares in the last quarter. Engineers Gate Manager LP bought a new position in shares of Ellington Credit during the 2nd quarter worth approximately $83,000. Finally, Vident Advisory LLC lifted 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. Institutional investors own 20.40% of the company’s stock.

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.