Ellington Credit (NYSE:EARN) Share Price Passes Below 200-Day Moving Average - Should You Sell?

Key Points

• Ellington Credit's share price has fallen below its 200-day moving average of $5.59, trading as low as $5.01 with a recent trading volume of 458,097 shares.
• Analysts have mixed opinions on the stock, with UBS Group raising its price target to $5.75 and assigning a "neutral" rating, while an average target price stands at $6.13, reflecting a "Moderate Buy" rating.
• The company recently announced a $0.08 dividend to be paid on November 28th, representing a high yield of 1,859.0%, although its payout ratio is over 533%.

Ellington Credit Company (NYSE:EARN - Get Free Report)'s share price passed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $5.59 and traded as low as $5.01. Ellington Credit shares last traded at $5.01, with a volume of 458,097 shares traded.

Analysts Set New Price Targets

EARN has been the topic of several research analyst reports. UBS Group upped their price target on shares of Ellington Credit from $5.50 to $5.75 and gave the stock a "neutral" rating in a report on Wednesday, July 16th. Wall Street Zen raised shares of Ellington Credit from a "sell" rating to a "hold" rating in a report on Saturday, September 13th. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, Ellington Credit presently has an average rating of "Moderate Buy" and an average target price of $6.13.

Ellington Credit Stock Down 2.4%

The firm's 50-day moving average is $5.62 and its 200-day moving average is $5.59. The company has a market capitalization of $187.99 million, a PE ratio of 27.81 and a beta of 1.33.

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

Ellington Credit Announces Dividend

The business also recently announced a oct 25 dividend, which will be paid on Friday, November 28th. Investors of record on Friday, October 31st will be given a $0.08 dividend. The ex-dividend date is Friday, October 31st. This represents a yield of 1,859.0%. Ellington Credit's payout ratio is 533.33%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Bogart Wealth LLC boosted its position in Ellington Credit by 62.5% during the second quarter. Bogart Wealth LLC now owns 5,200 shares of the real estate investment trust's stock valued at $30,000 after buying an additional 2,000 shares during the period. Inspire Advisors LLC boosted its position in Ellington Credit by 13.7% during the second quarter. Inspire Advisors LLC now owns 19,566 shares of the real estate investment trust's stock valued at $113,000 after buying an additional 2,363 shares during the period. Vident Advisory LLC boosted its position in Ellington Credit by 27.5% during the first quarter. Vident Advisory LLC now owns 17,383 shares of the real estate investment trust's stock valued at $94,000 after buying an additional 3,754 shares during the period. Quarry LP purchased a new stake in Ellington Credit during the first quarter valued at about $33,000. Finally, Envestnet Asset Management Inc. boosted its position in Ellington Credit by 14.1% during the second quarter. Envestnet Asset Management Inc. now owns 71,562 shares of the real estate investment trust's stock valued at $411,000 after buying an additional 8,859 shares during the period. 20.40% of the stock is currently owned by hedge funds and other institutional investors.

About Ellington Credit

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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