Ellington Credit (NYSE:EARN) Stock Rating Lowered by Wall Street Zen

Key Points

• Ellington Credit has been downgraded by Wall Street Zen from a "hold" to a "sell" rating.
• UBS Group has raised its price target for Ellington Credit from $5.50 to $5.75, maintaining a "neutral" rating.
• In its recent quarterly earnings report, Ellington Credit reported earnings of $0.18 per share, below the expected $0.20, with revenues also missing estimates.

Ellington Credit (NYSE:EARN - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Saturday.

Separately, UBS Group raised their target price on shares of Ellington Credit from $5.50 to $5.75 and gave the company a "neutral" rating in a research note on Wednesday, July 16th. One investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, Ellington Credit has an average rating of "Moderate Buy" and a consensus target price of $6.13.

Ellington Credit Stock Performance

EARN traded up $0.06 on Friday, reaching $5.69. The company had a trading volume of 116,509 shares, compared to its average volume of 555,609. The business has a 50 day simple moving average of $5.80 and a 200 day simple moving average of $5.71. The company has a market cap of $213.53 million, a price-to-earnings ratio of 31.58 and a beta of 1.31. Ellington Credit has a 52-week low of $4.32 and a 52-week high of $7.11.

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 for the quarter, missing analysts' consensus estimates of $0.20 by ($0.02). The company had revenue of $9.87 million during the quarter, compared to analysts' expectations of $12.15 million. Ellington Credit had a net margin of 19.24% and a return on equity of 15.90%. As a group, equities research analysts predict that Ellington Credit will post 1.17 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Vident Advisory LLC increased its stake in shares of Ellington Credit by 109.1% in the second quarter. Vident Advisory LLC now owns 36,350 shares of the real estate investment trust's stock worth $209,000 after buying an additional 18,967 shares during the period. Engineers Gate Manager LP purchased a new position in shares of Ellington Credit in the second quarter worth $83,000. Delphi Financial Group Inc. increased its stake in shares of Ellington Credit by 230.8% in the second quarter. Delphi Financial Group Inc. now owns 608,700 shares of the real estate investment trust's stock worth $3,500,000 after buying an additional 424,700 shares during the period. Inspire Advisors LLC increased its stake in shares of Ellington Credit by 13.7% in the second quarter. Inspire Advisors LLC now owns 19,566 shares of the real estate investment trust's stock worth $113,000 after buying an additional 2,363 shares during the period. Finally, Envestnet Asset Management Inc. increased its stake in shares of Ellington Credit by 14.1% in the second quarter. Envestnet Asset Management Inc. now owns 71,562 shares of the real estate investment trust's stock worth $411,000 after buying an additional 8,859 shares during the period. 20.40% of the stock is owned by hedge funds and other 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.