Ellington Credit (NYSE:EARN) Stock Rating Lowered by Wall Street Zen

Ellington Credit (NYSE:EARN) was downgraded by research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a report issued on Saturday.

EARN has been the subject of a number of other reports. UBS Group set a $6.00 price target on Ellington Credit in a research note on Tuesday, December 23rd. Piper Sandler dropped their price target on Ellington Credit from $6.00 to $5.50 and set an “overweight” rating on the stock in a research note on Friday, March 6th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $5.75.

Ellington Credit Trading Down 2.7%

Shares of EARN stock opened at $4.48 on Friday. Ellington Credit has a 12-month low of $4.32 and a 12-month high of $6.08. The business’s fifty day simple moving average is $5.22 and its 200-day simple moving average is $5.31. The company has a market cap of $168.08 million, a PE ratio of -10.91 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 earnings per share for the quarter, missing analysts’ consensus estimates of $0.24 by ($0.03). The business had revenue of $11.12 million during the quarter, compared to analyst estimates of $12.71 million. Ellington Credit had a positive return on equity of 16.47% and a negative net margin of 34.31%. On average, equities analysts forecast that Ellington Credit will post 1.17 earnings per share for the current year.

Hedge Funds Weigh In On Ellington Credit

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in EARN. Virtu Financial LLC acquired a new stake in Ellington Credit during the 4th quarter worth about $57,000. Quadrature Capital Ltd acquired a new position in shares of Ellington Credit in the fourth quarter valued at about $75,000. Engineers Gate Manager LP acquired a new position in shares of Ellington Credit in the second quarter valued at about $83,000. Inspire Advisors LLC raised its stake in shares of Ellington Credit by 13.7% in the second quarter. Inspire Advisors LLC now owns 19,566 shares of the real estate investment trust’s stock worth $113,000 after purchasing an additional 2,363 shares during the last quarter. Finally, World Investment Advisors purchased a new position in shares of Ellington Credit in the fourth quarter worth about $115,000. Hedge funds and other 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.