Ellington Credit (NYSE:EARN) Shares Pass Below 200-Day Moving Average - What's Next?

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)'s share price passed 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 trading hands.

Wall Street Analysts Forecast Growth

EARN has been the topic of several recent analyst reports. 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 note on Wednesday, July 16th. Wall Street Zen downgraded Ellington Credit from a "hold" rating to a "sell" rating in a report on Friday, May 16th.

Ellington Credit Trading Up 0.2%

The business has a fifty day moving average price of $5.79 and a 200 day moving average price of $5.82. The firm has a market cap of $211.84 million, a PE ratio of -43.38 and a beta of 1.29.

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

Ellington Credit Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Friday, August 29th will be issued a $0.08 dividend. This represents a c) annualized dividend and a dividend yield of 17.0%. The ex-dividend date of this dividend is Friday, August 29th. Ellington Credit's dividend payout ratio (DPR) is currently -738.46%.

Institutional Trading of Ellington Credit

Hedge funds have recently modified their holdings of the business. Wells Fargo & Company MN increased its stake in Ellington Credit by 56,104,600.0% in 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 purchasing an additional 1,122,092 shares in the last quarter. Millennium Management LLC grew its position in shares of 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 valued at $5,044,000 after purchasing an additional 773,169 shares during the period. Susquehanna International Group LLP grew its position 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 valued at $3,189,000 after purchasing an additional 409,817 shares during the period. Jane Street Group LLC grew its position 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 valued at $2,055,000 after purchasing an additional 306,192 shares during the period. Finally, Delphi Financial Group Inc. acquired a new position in Ellington Credit in the first quarter valued at $995,000. 20.40% of the stock is owned by institutional investors and hedge funds.

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.