Ellington Credit (NYSE:EARN) Stock Price Passes Below Two Hundred Day Moving Average – Should You Sell?

Ellington Credit Company (NYSE:EARN) crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $4.87 and traded as low as $4.29. Ellington Credit shares last traded at $4.3850, with a volume of 231,910 shares.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen raised Ellington Credit from a “sell” rating to a “hold” rating in a research note on Saturday, April 4th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $5.75.

Ellington Credit Price Performance

The firm has a market capitalization of $166.18 million, a price-to-earnings ratio of -4.25 and a beta of 1.27. The business’s fifty day simple moving average is $4.63 and its 200 day simple moving average is $4.86.

Ellington Credit (NYSE:EARN) last announced its quarterly earnings data on Wednesday, May 20th. The real estate investment trust reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.03). The firm had revenue of $9.87 million for the quarter, compared to analysts’ expectations of $10.57 million.

Ellington Credit Dividend Announcement

The company also recently declared a monthly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, July 31st will be paid a dividend of $0.08 per share. This represents a c) dividend on an annualized basis and a yield of 21.7%. The ex-dividend date of this dividend is Friday, July 31st. Ellington Credit’s dividend payout ratio is -92.31%.

Institutional Investors Weigh In On Ellington Credit

A number of hedge funds have recently added to or reduced their stakes in EARN. McIlrath & Eck LLC raised its position in shares of Ellington Credit by 122.4% during the first quarter. McIlrath & Eck LLC now owns 10,969 shares of the real estate investment trust’s stock worth $49,000 after purchasing an additional 6,038 shares during the period. Millennium Management LLC grew its position in Ellington Credit by 485.8% in 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 period. Jane Street Group LLC grew its position in Ellington Credit by 415.4% in 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 period. Goldman Sachs Group Inc. increased 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 in the last quarter. Finally, Envestnet Asset Management Inc. increased 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 in the last quarter. Institutional investors and hedge funds 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.