Ellington Credit Company (NYSE:EARN) Declares Monthly Dividend of $0.08

Key Points

• Ellington Credit declared a monthly dividend of $0.08 per share, payable June 30 to holders of record May 29, implying a 19.7% annualized yield.
• The firm reported quarterly EPS of $0.21 (vs. $0.24 expected), posted a negative net margin (-34.31%) and carries a high dividend payout ratio of 88.9%, suggesting the dividend is currently covered but could be vulnerable if earnings weaken.
• Shares trade around $4.88 with a market cap of about $183M and a 52-week range of $4.27–$6.08; analysts' consensus is a "Moderate Buy" with a $5.75 price target.

Ellington Credit Company (NYSE:EARN - Get Free Report) announced a monthly dividend on Thursday, May 7th. Stockholders of record on Friday, May 29th will be paid a dividend of 0.08 per share by the real estate investment trust on Tuesday, June 30th. This represents a c) annualized dividend and a dividend yield of 19.7%. The ex-dividend date is Friday, May 29th.

Ellington Credit has decreased its dividend payment by an average of 0.0%per year over the last three years. Ellington Credit has a dividend payout ratio of 88.9% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline.

Ellington Credit Stock Performance

Shares of EARN opened at $4.88 on Friday. The company has a 50 day moving average price of $4.63 and a 200-day moving average price of $5.07. Ellington Credit has a fifty-two week low of $4.27 and a fifty-two week high of $6.08. The stock has a market capitalization of $183.20 million, a PE ratio of -11.89 and a beta of 1.27.

Ellington Credit (NYSE:EARN - Get Free Report) last issued its quarterly earnings data on Wednesday, March 4th. The real estate investment trust reported $0.21 earnings per share for the quarter, missing analysts' consensus estimates of $0.24 by ($0.03). The company had revenue of ($17.48) million for the quarter, compared to analysts' expectations of $12.71 million. Ellington Credit had a positive return on equity of 16.47% and a negative net margin of 34.31%.

Analysts Set New Price Targets

EARN has been the subject of a number of analyst reports. Piper Sandler decreased their price objective on Ellington Credit from $6.00 to $5.50 and set an "overweight" rating for the company in a research note on Friday, March 6th. Wall Street Zen upgraded Ellington Credit from a "sell" rating to a "hold" rating in a research note on Saturday, April 4th. 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, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $5.75.

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.

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