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

Ellington Credit (NYSE:EARN) released 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 Price Performance

Shares of NYSE EARN traded down $0.12 during midday trading on Tuesday, reaching $4.65. 339,978 shares of the stock traded hands, compared to its average volume of 459,581. The stock has a market capitalization of $174.57 million, a PE ratio of -11.33 and a beta of 1.27. Ellington Credit has a one year low of $4.27 and a one year high of $6.08. The company’s 50 day moving average is $4.61 and its 200 day moving average is $5.04.

Ellington Credit Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th will be given a dividend of $0.08 per share. This represents a c) dividend on an annualized basis and a dividend yield of 20.7%. The ex-dividend date is Friday, May 29th. Ellington Credit’s dividend payout ratio is currently -234.15%.

Analyst Upgrades and Downgrades

EARN has been the subject of several analyst 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 reduced their target price 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 investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $5.75.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Envestnet Asset Management Inc. boosted its position in shares of Ellington Credit by 6.5% during the 3rd quarter. Envestnet Asset Management Inc. now owns 76,237 shares of the real estate investment trust’s stock valued at $415,000 after acquiring an additional 4,675 shares during the last quarter. Virtu Financial LLC bought a new stake in Ellington Credit in the fourth quarter worth $57,000. Quadrature Capital Ltd bought a new stake in Ellington Credit in the fourth quarter worth $75,000. Engineers Gate Manager LP bought a new stake in Ellington Credit in the second quarter worth $83,000. Finally, Vident Advisory LLC lifted its position in Ellington Credit by 109.1% in the second 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 during the last quarter. 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.