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

Ellington Credit (NYSE:EARN) released its quarterly earnings data on Wednesday. The real estate investment trust reported $0.15 earnings per share for the quarter, missing the consensus estimate of $0.20 by ($0.05), Zacks reports. The firm had revenue of $6.08 million during the quarter, compared to analyst estimates of $10.57 million.

Ellington Credit Stock Performance

Shares of EARN stock traded up $0.04 on Thursday, reaching $4.39. 134,280 shares of the company’s stock traded hands, compared to its average volume of 439,233. The company has a market capitalization of $165.18 million, a P/E ratio of -4.23 and a beta of 1.28. Ellington Credit has a 12-month low of $4.25 and a 12-month high of $5.89. The business’s 50 day moving average price is $4.44 and its two-hundred day moving average price is $4.69.

Ellington Credit Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, August 31st will be given a $0.08 dividend. This represents a c) annualized dividend and a dividend yield of 21.8%. The ex-dividend date of this dividend is Monday, August 31st. Ellington Credit’s dividend payout ratio (DPR) is -92.31%.

Wall Street Analysts Forecast Growth

Separately, Piper Sandler dropped their price target on 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 issued a Hold rating to the company. Based on data from MarketBeat.com, Ellington Credit presently has an average rating of “Moderate Buy” and an average target price of $5.50.

Hedge Funds Weigh In On Ellington Credit

A number of hedge funds have recently modified their holdings of EARN. Millennium Management LLC grew its stake in shares of 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 buying an additional 773,169 shares in the last quarter. Jane Street Group LLC grew its position in Ellington Credit by 415.4% in the first quarter. Jane Street Group LLC now owns 379,906 shares of the real estate investment trust’s stock worth $2,055,000 after acquiring an additional 306,192 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in shares of 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 worth $686,000 after purchasing an additional 45,845 shares during the last quarter. Osaic Holdings Inc. raised its holdings 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 purchasing an additional 39,392 shares in the last quarter. Finally, Envestnet Asset Management Inc. lifted its stake 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 purchasing an additional 4,675 shares during the last quarter. 20.40% of the stock is owned by institutional investors and hedge funds.

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.