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

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

Ellington Credit Stock Down 0.5%

Shares of EARN stock traded down $0.02 during trading hours on Wednesday, hitting $4.34. 308,284 shares of the company were exchanged, compared to its average volume of 441,366. The firm has a fifty day moving average of $4.45 and a 200 day moving average of $4.70. Ellington Credit has a 1 year low of $4.25 and a 1 year high of $5.89. The firm has a market cap of $163.10 million, a PE ratio of -4.17 and a beta of 1.28.

Ellington Credit Dividend Announcement

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

Hedge Funds Weigh In On Ellington Credit

Hedge funds have recently made changes to their positions in the stock. Millennium Management LLC increased its holdings in shares of 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 boosted its holdings 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 valued at $2,055,000 after acquiring an additional 306,192 shares during the last quarter. Goldman Sachs Group Inc. grew its position in Ellington Credit by 56.6% during the first 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 period. Osaic Holdings Inc. grew its position in Ellington Credit by 60.3% during the second quarter. Osaic Holdings Inc. now owns 104,689 shares of the real estate investment trust’s stock valued at $602,000 after acquiring an additional 39,392 shares during the period. Finally, Envestnet Asset Management Inc. increased its stake in Ellington Credit by 6.5% during the third quarter. Envestnet Asset Management Inc. now owns 76,237 shares of the real estate investment trust’s stock worth $415,000 after acquiring an additional 4,675 shares during the last quarter. Institutional investors and hedge funds own 20.40% of the company’s stock.

Analyst Ratings Changes

Separately, Piper Sandler reduced 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 given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $5.50.

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.