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

Key Points

• Ellington Credit reported quarterly EPS of $0.15, missing analysts’ consensus estimate of $0.20 by $0.05.
• The stock fell 0.5% to $4.34, while Piper Sandler lowered its price target to $5.00 but retained an “overweight” rating. Analysts maintain a “Moderate Buy” consensus with an average target of $5.50.
• The company declared a monthly dividend of $0.08 per share, implying a 22.1% annualized yield, with shareholders of record on August 31 eligible for payment on September 30.

Ellington Credit (NYSE:EARN - Get Free Report) issued its quarterly earnings data on Wednesday. The real estate investment trust reported $0.15 earnings per share for the quarter, missing analysts' consensus estimates of $0.20 by ($0.05), Zacks reports.

Ellington Credit Trading Down 0.5%

Shares of EARN stock traded down $0.02 during midday trading on Wednesday, reaching $4.34. 304,760 shares of the stock were exchanged, compared to its average volume of 441,327. 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. The company's 50 day moving average is $4.45 and its two-hundred day moving average is $4.70.

Ellington Credit Dividend Announcement

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

Analysts Set New Price Targets

Separately, Piper Sandler dropped their price target on Ellington Credit from $5.25 to $5.00 and set an "overweight" rating for the company in a research note on Monday, July 13th. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $5.50.

Institutional Investors Weigh In On Ellington Credit

Several hedge funds have recently made changes to their positions in the company. Millennium Management LLC raised its holdings in Ellington Credit by 485.8% in the first quarter. Millennium Management LLC now owns 932,326 shares of the real estate investment trust's stock worth $5,044,000 after purchasing an additional 773,169 shares in the last quarter. Jane Street Group LLC increased its position in shares of 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 acquiring an additional 306,192 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Ellington Credit by 56.6% in 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 last quarter. Osaic Holdings Inc. lifted its stake in 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 acquiring an additional 39,392 shares during the period. Finally, Envestnet Asset Management Inc. lifted its holdings in shares of Ellington Credit by 6.5% during 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 buying an additional 4,675 shares during the period. 20.40% of the stock is currently owned by institutional investors.

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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