Ellington Financial (NYSE:EFC) Rating Lowered to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Ellington Financial from “hold” to “sell.” Despite the downgrade, MarketBeat’s consensus rating remains “Hold,” with an average price target of $13.83.
• Ellington Financial’s latest quarter missed expectations: earnings were $0.45 per share versus $0.47 forecast, and revenue was $117.72 million versus $125.83 million expected.
• The board declared a monthly dividend of $0.13 per share, equivalent to $1.56 annualized and a reported yield of 13.7%.

Ellington Financial (NYSE:EFC - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

A number of other brokerages also recently issued reports on EFC. Zacks Research downgraded shares of Ellington Financial from a "strong-buy" rating to a "hold" rating in a report on Monday, July 13th. JonesTrading decreased their price target on Ellington Financial from $14.50 to $13.00 and set a "buy" rating for the company in a research note on Thursday. Piper Sandler dropped their target price on Ellington Financial from $15.00 to $14.00 and set an "overweight" rating on the stock in a report on Friday, October 9th. UBS Group raised their price objective on Ellington Financial from $14.00 to $14.50 and gave the stock a "neutral" rating in a research report on Wednesday, August 19th. Finally, Weiss Ratings lowered shares of Ellington Financial from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, October 8th. Two equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $13.83.

Ellington Financial Stock Down 1.7%

EFC opened at $11.29 on Friday. The stock has a market cap of $1.46 billion, a PE ratio of 6.80 and a beta of 1.01. The business's fifty day simple moving average is $12.17 and its 200 day simple moving average is $12.84. The company has a quick ratio of 52.06, a current ratio of 52.06 and a debt-to-equity ratio of 10.39. Ellington Financial has a 52 week low of $11.15 and a 52 week high of $14.12.

Ellington Financial (NYSE:EFC - Get Free Report) last issued its quarterly earnings results on Wednesday, November 4th. The financial services provider reported $0.45 EPS for the quarter, missing analysts' consensus estimates of $0.47 by ($0.02). The company had revenue of $117.72 million during the quarter, compared to analysts' expectations of $125.83 million. Ellington Financial had a return on equity of 16.61% and a net margin of 52.43%. As a group, research analysts expect that Ellington Financial will post 2.13 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Ellington Financial

A number of institutional investors have recently added to or reduced their stakes in the stock. MCF Advisors LLC bought a new position in shares of Ellington Financial during the 2nd quarter valued at about $25,000. Continuum Advisory LLC acquired a new stake in Ellington Financial during the second quarter worth approximately $28,000. Farther Finance Advisors LLC boosted its holdings in shares of Ellington Financial by 287.6% during the 3rd quarter. Farther Finance Advisors LLC now owns 2,566 shares of the financial services provider's stock valued at $30,000 after acquiring an additional 1,904 shares in the last quarter. Integrated Wealth Concepts LLC bought a new stake in Ellington Financial during the second quarter valued at $41,000. Finally, TOP Private Wealth LLC. acquired a new position in Ellington Financial during the 2nd quarter valued at about $64,000. Institutional investors and hedge funds own 55.62% of the company's stock.

Ellington Financial News Roundup

Here are the key news stories impacting Ellington Financial this week:

• Positive Sentiment: The board declared a monthly dividend of $0.13 per share, payable December 31 to shareholders of record November 30. That equates to $1.56 annualized and a reported yield of 13.7%, supporting EFC’s appeal to income-focused investors. Dividend announcement
• Neutral Sentiment: Ellington is pursuing growth in non-qualified mortgage servicing through a new acquisition. The strategy could expand its servicing business, though the supplied report does not detail the deal’s terms or expected financial contribution. Non-QM servicing acquisition article
• Negative Sentiment: Q3 earnings were $0.45 per share versus the $0.47 consensus, while revenue of $117.72 million also fell short of the $125.83 million estimate. The modest misses may have pressured the shares. Q3 results
• Negative Sentiment: JonesTrading cut its price target from $14.50 to $13.00, tempering its outlook, although it maintained a Buy rating. The new target still implies potential upside from the cited $11.29 price. JonesTrading rating information

Ellington Financial Company Profile

Ellington Financial Inc is a real estate investment trust (REIT) that acquires, invests in and manages a portfolio of mortgage-related and other financial assets. The company focuses primarily on residential and commercial mortgage loans, mortgage-backed securities and related investments.

Its investment activities may include agency and non-agency residential mortgage-backed securities, commercial mortgage-backed securities, residential and commercial mortgage loans, mortgage servicing rights and consumer loans.

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