Ellington Credit Company (NYSE:EARN) Sees Significant Growth in Short Interest

Ellington Credit Company (NYSE:EARN) was the recipient of a large increase in short interest during the month of February. As of February 13th, there was short interest totaling 546,100 shares, an increase of 50.8% from the January 29th total of 362,079 shares. Based on an average daily volume of 442,007 shares, the short-interest ratio is presently 1.2 days. Currently, 1.5% of the company’s stock are sold short. Currently, 1.5% of the company’s stock are sold short. Based on an average daily volume of 442,007 shares, the short-interest ratio is presently 1.2 days.

Wall Street Analyst Weigh In

EARN has been the topic of a number of research reports. Wall Street Zen upgraded Ellington Credit from a “sell” rating to a “hold” rating in a report on Tuesday, November 11th. UBS Group set a $6.00 price objective on shares of Ellington Credit in a research report on Tuesday, December 23rd. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $6.25.

Institutional Investors Weigh In On Ellington Credit

Large investors have recently made changes to their positions in the business. Millennium Management LLC grew its holdings 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 in the last quarter. Delphi Financial Group Inc. lifted its position in Ellington Credit by 230.8% in the second quarter. Delphi Financial Group Inc. now owns 608,700 shares of the real estate investment trust’s stock worth $3,500,000 after purchasing an additional 424,700 shares during the period. Jane Street Group LLC lifted its stake in Ellington Credit by 415.4% during 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 purchasing an additional 306,192 shares during the last quarter. HighTower Advisors LLC acquired a new position in shares of Ellington Credit in the 4th quarter worth $369,000. Finally, Goldman Sachs Group Inc. raised its position in shares of 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 worth $686,000 after purchasing an additional 45,845 shares during the period. Institutional investors and hedge funds own 20.40% of the company’s stock.

Ellington Credit Stock Up 1.5%

NYSE EARN traded up $0.08 during trading hours on Monday, hitting $4.97. 590,849 shares of the stock were exchanged, compared to its average volume of 533,933. The stock has a 50-day moving average of $5.33 and a 200 day moving average of $5.38. The company has a market cap of $186.49 million, a price-to-earnings ratio of 62.07 and a beta of 1.29. Ellington Credit has a 12-month low of $4.32 and a 12-month high of $6.49.

Ellington Credit Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, February 27th will be given a dividend of $0.08 per share. This represents a c) dividend on an annualized basis and a dividend yield of 19.3%. The ex-dividend date is Friday, February 27th. Ellington Credit’s dividend payout ratio (DPR) is presently 1,200.00%.

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.