Ellington Credit (NYSE:EARN) Posts Quarterly Earnings Results, Misses Estimates 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 positive return on equity of 16.47% and a negative net margin of 90.90%.The company had revenue of ($29.57) million during the quarter, compared to the consensus estimate of $13.30 million.

Ellington Credit Price Performance

Shares of EARN stock opened at $4.79 on Thursday. Ellington Credit has a 1-year low of $4.27 and a 1-year high of $6.08. The stock’s fifty day moving average price is $4.62 and its 200 day moving average price is $5.04. The company has a market cap of $180.16 million, a price-to-earnings ratio of -4.61 and a beta of 1.27.

Ellington Credit Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, May 29th will be paid a dividend of $0.08 per share. This represents a c) annualized dividend and a yield of 20.0%. The ex-dividend date is Friday, May 29th. Ellington Credit’s payout ratio is -234.15%.

Institutional Trading of Ellington Credit

Several large investors have recently added to or reduced their stakes in the company. Millennium Management LLC grew its stake 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 valued at $5,044,000 after purchasing an additional 773,169 shares during the last quarter. Jane Street Group LLC grew 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 purchasing an additional 306,192 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in 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 valued at $686,000 after purchasing an additional 45,845 shares during the last quarter. Osaic Holdings Inc. grew its stake in 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 purchasing an additional 39,392 shares during the last quarter. Finally, Envestnet Asset Management Inc. grew its stake in 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 purchasing an additional 4,675 shares during the last quarter. Hedge funds and other institutional investors own 20.40% of the company’s stock.

Analyst Ratings Changes

EARN has been the topic of several research analyst reports. Wall Street Zen upgraded Ellington Credit from a “sell” rating to a “hold” rating in a research note on Saturday, April 4th. Piper Sandler dropped their target price 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 assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $5.75.

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.