Ellington Credit (NYSE:EARN) Shares Pass Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Ellington Credit's stock price has declined below its 200-day moving average, currently trading at $5.66, indicating potential concerns for investors.
• Analysts have recently downgraded Ellington Credit from a "hold" to a "sell" rating, while another firm increased its price target to $5.75, reflecting mixed sentiment in the market.
• The company reported a quarterly EPS of $0.26, missing expectations, and announced a significant dividend yield of 1,630.0%, set to be paid on August 29th.

Ellington Credit Company (NYSE:EARN - Get Free Report) shares crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $5.83 and traded as low as $5.65. Ellington Credit shares last traded at $5.66, with a volume of 272,543 shares changing hands.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the stock. Wall Street Zen downgraded shares of Ellington Credit from a "hold" rating to a "sell" rating in a research note on Friday, May 16th. UBS Group upped their price target on shares of Ellington Credit from $5.50 to $5.75 and gave the company a "neutral" rating in a report on Wednesday, July 16th.

Ellington Credit Price Performance

The business's 50 day simple moving average is $5.79 and its 200-day simple moving average is $5.81. The stock has a market capitalization of $213.53 million, a P/E ratio of -43.65 and a beta of 1.29.

Ellington Credit (NYSE:EARN - Get Free Report) last announced its quarterly earnings results on Tuesday, May 20th. The real estate investment trust reported $0.26 EPS for the quarter, missing analysts' consensus estimates of $0.27 by ($0.01). Ellington Credit had a negative net margin of 21.82% and a positive return on equity of 17.67%. The company had revenue of $9.25 million during the quarter, compared to analyst estimates of $10.35 million. During the same quarter last year, the company posted $0.27 EPS. Research analysts anticipate that Ellington Credit Company will post 1.17 earnings per share for the current fiscal year.

Ellington Credit Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Friday, August 29th will be issued a $0.08 dividend. This represents a c) dividend on an annualized basis and a yield of 16.9%. The ex-dividend date is Friday, August 29th. Ellington Credit's dividend payout ratio (DPR) is presently -738.46%.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the company. Wells Fargo & Company MN boosted its position in Ellington Credit by 56,104,600.0% during the 4th quarter. Wells Fargo & Company MN now owns 1,122,094 shares of the real estate investment trust's stock valued at $7,428,000 after buying an additional 1,122,092 shares during the period. Millennium Management LLC increased its stake in Ellington Credit by 485.8% during the 1st quarter. Millennium Management LLC now owns 932,326 shares of the real estate investment trust's stock valued at $5,044,000 after purchasing an additional 773,169 shares in the last quarter. Susquehanna International Group LLP grew its stake in shares of Ellington Credit by 570.4% in the fourth quarter. Susquehanna International Group LLP now owns 481,669 shares of the real estate investment trust's stock worth $3,189,000 after acquiring an additional 409,817 shares during the period. Jane Street Group LLC grew its stake in shares of Ellington Credit by 415.4% in the first quarter. Jane Street Group LLC now owns 379,906 shares of the real estate investment trust's stock worth $2,055,000 after acquiring an additional 306,192 shares during the period. Finally, Delphi Financial Group Inc. bought a new stake in Ellington Credit during the first quarter valued at approximately $995,000. 20.40% of the stock is owned by institutional investors.

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.