Ellington Credit (NYSE:EARN) Share Price Passes Below 200-Day Moving Average - Here's Why

Key Points

• Ellington Credit (NYSE:EARN) fell below its 200-day moving average of $5.61, trading as low as $5.29 before closing at $5.38.
• The company reported a quarterly EPS of $0.18, missing analysts' estimates and generating a revenue of $9.87 million against a $12.15 million forecast.
• Ellington Credit announced a dividend of $0.08 per share, which will yield an astonishing 1,757.0%, with an ex-dividend date set for September 30th.

Ellington Credit Company (NYSE:EARN - Get Free Report) passed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $5.61 and traded as low as $5.29. Ellington Credit shares last traded at $5.38, with a volume of 237,303 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on EARN shares. UBS Group upped their price target on Ellington Credit from $5.50 to $5.75 and gave the company a "neutral" rating in a research report on Wednesday, July 16th. Wall Street Zen raised Ellington Credit from a "sell" rating to a "hold" rating in a research report on Saturday, September 13th. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $6.13.

Ellington Credit Stock Performance

The firm has a market cap of $201.88 million, a P/E ratio of 29.86 and a beta of 1.33. The stock has a fifty day simple moving average of $5.70 and a 200 day simple moving average of $5.61.

Ellington Credit (NYSE:EARN - Get Free Report) last released its earnings results on Tuesday, August 19th. The real estate investment trust reported $0.18 EPS for the quarter, missing analysts' consensus estimates of $0.20 by ($0.02). The business had revenue of $9.87 million for the quarter, compared to the consensus estimate of $12.15 million. Ellington Credit had a net margin of 19.24% and a return on equity of 15.90%. Research analysts predict that Ellington Credit Company will post 1.17 earnings per share for the current year.

Ellington Credit Announces Dividend

The company also recently announced a sep 25 dividend, which will be paid on Friday, October 31st. Investors of record on Tuesday, September 30th will be given a $0.08 dividend. This represents a dividend yield of 1,757.0%. The ex-dividend date of this dividend is Tuesday, September 30th. Ellington Credit's dividend payout ratio is presently 533.33%.

Institutional Investors Weigh In On Ellington Credit

A number of institutional investors have recently modified their holdings of EARN. Bogart Wealth LLC increased its stake in shares of Ellington Credit by 62.5% in the 2nd quarter. Bogart Wealth LLC now owns 5,200 shares of the real estate investment trust's stock valued at $30,000 after purchasing an additional 2,000 shares in the last quarter. Quarry LP purchased a new position in shares of Ellington Credit during the 1st quarter valued at approximately $33,000. Quantbot Technologies LP lifted its position in shares of Ellington Credit by 211.0% during the 1st quarter. Quantbot Technologies LP now owns 14,016 shares of the real estate investment trust's stock valued at $76,000 after buying an additional 9,509 shares in the last quarter. Engineers Gate Manager LP purchased a new position in shares of Ellington Credit during the 2nd quarter valued at approximately $83,000. Finally, Inspire Advisors LLC lifted its position in shares of Ellington Credit by 16.3% during the 1st quarter. Inspire Advisors LLC now owns 17,203 shares of the real estate investment trust's stock valued at $93,000 after buying an additional 2,407 shares in the last quarter. 20.40% of the stock is currently owned by institutional investors and hedge funds.

Ellington Credit Company Profile

Ellington Credit Company, a real estate investment trust, acquires, invests in, and manages residential mortgage-and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), including agency pools and agency collateralized mortgage obligations (CMOs); and non-agency RMBS, such as non-agency CMOs, such as investment grade and non-investment grade.

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