Ellington Credit (NYSE:EARN) Stock Price Crosses Below 200 Day Moving Average – Here’s Why

Ellington Credit Company (NYSE:EARN) passed below its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $5.01 and traded as low as $4.66. Ellington Credit shares last traded at $4.7250, with a volume of 262,165 shares changing hands.

Wall Street Analyst Weigh In

EARN has been the topic of a number of research reports. Piper Sandler decreased their price objective on Ellington Credit from $6.00 to $5.50 and set an “overweight” rating on the stock in a report on Friday, March 6th. Wall Street Zen raised Ellington Credit from a “sell” rating to a “hold” rating in a report on Saturday, April 4th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $5.75.

Ellington Credit Trading Up 1.6%

The stock has a 50 day simple moving average of $4.69 and a 200 day simple moving average of $5.01. The firm has a market capitalization of $177.57 million, a PE ratio of -4.54 and a beta of 1.26.

Ellington Credit (NYSE:EARN) last posted its quarterly earnings results on Wednesday, May 20th. The real estate investment trust reported $0.19 EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.03). Ellington Credit had a negative net margin of 75.00% and a positive return on equity of 16.47%. 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 Tuesday, June 30th. Investors of record on Friday, May 29th will be issued a dividend of $0.08 per share. This represents a c) dividend on an annualized basis and a yield of 20.3%. The ex-dividend date is Friday, May 29th. Ellington Credit’s dividend payout ratio is currently -92.31%.

Institutional Investors Weigh In On Ellington Credit

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. McIlrath & Eck LLC raised its holdings in Ellington Credit by 122.4% during the 1st quarter. McIlrath & Eck LLC now owns 10,969 shares of the real estate investment trust’s stock valued at $49,000 after buying an additional 6,038 shares during the last quarter. Virtu Financial LLC bought a new stake in Ellington Credit during the 4th quarter valued at $57,000. Quadrature Capital Ltd bought a new stake in Ellington Credit during the 4th quarter valued at $75,000. Engineers Gate Manager LP bought a new stake in Ellington Credit during the 2nd quarter valued at $83,000. Finally, World Investment Advisors bought a new stake in Ellington Credit during the 4th quarter valued at $115,000. 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.