Ellington Credit (NYSE:EARN) Issues Quarterly Earnings Results, Misses Expectations By $0.05 EPS

Ellington Credit (NYSE:EARN) released its earnings results on Wednesday. The real estate investment trust reported $0.15 EPS for the quarter, missing the consensus estimate of $0.20 by ($0.05), Zacks reports.

Ellington Credit Stock Down 0.5%

Shares of NYSE EARN traded down $0.02 during midday trading on Wednesday, reaching $4.34. 304,760 shares of the company’s stock traded hands, compared to its average volume of 441,327. Ellington Credit has a one year low of $4.25 and a one year high of $5.89. The stock’s 50 day simple moving average is $4.45 and its 200-day simple moving average is $4.70. The company has a market cap of $163.10 million, a price-to-earnings ratio of -4.17 and a beta of 1.28.

Ellington Credit Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, August 31st will be paid a dividend of $0.08 per share. The ex-dividend date is Monday, August 31st. This represents a c) dividend on an annualized basis and a dividend yield of 22.1%. Ellington Credit’s dividend payout ratio (DPR) is currently -92.31%.

Analysts Set New Price Targets

Separately, Piper Sandler reduced their target price on shares of Ellington Credit from $5.25 to $5.00 and set an “overweight” rating on the stock in a research note on Monday, July 13th. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $5.50.

Institutional Investors Weigh In On Ellington Credit

Large investors have recently bought and sold shares of the company. Millennium Management LLC raised its position in 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 during the last quarter. Jane Street Group LLC lifted its stake in 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 valued at $2,055,000 after acquiring an additional 306,192 shares during the period. Goldman Sachs Group Inc. boosted its holdings in shares of Ellington Credit by 56.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 126,864 shares of the real estate investment trust’s stock valued at $686,000 after acquiring an additional 45,845 shares during the last quarter. Osaic Holdings Inc. raised its stake in shares of Ellington Credit by 60.3% during the 2nd quarter. Osaic Holdings Inc. now owns 104,689 shares of the real estate investment trust’s stock valued at $602,000 after buying an additional 39,392 shares during the last quarter. Finally, Envestnet Asset Management Inc. lifted its holdings in shares of Ellington Credit by 6.5% in 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 buying an additional 4,675 shares during the period. Hedge funds and other institutional investors own 20.40% of the company’s stock.

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.