Ellington Financial Inc. (NYSE:EFC) Sees Large Increase in Short Interest

Key Points

• Short interest jumped 39% to 6,356,062 shares as of March 31, equal to 5.3% of shares sold short and a short-interest ratio of 2.7 days, signaling increased bearish positioning.
• Ellington declared a monthly dividend of $0.13 (annualized yield 12.2%), but the payout ratio is high at 126.83%, raising questions about dividend sustainability.
• The company reported quarterly EPS of $0.47 (beat estimates) while revenue of $96.44M missed forecasts; the stock traded at $12.80 and carries an average analyst rating of "Moderate Buy" with a $14.56 target.

Ellington Financial Inc. (NYSE:EFC - Get Free Report) was the recipient of a significant growth in short interest in March. As of March 31st, there was short interest totaling 6,356,062 shares, a growth of 39.0% from the March 15th total of 4,571,267 shares. Based on an average trading volume of 2,378,431 shares, the short-interest ratio is currently 2.7 days. Currently, 5.3% of the company's shares are sold short.

Ellington Financial Stock Up 0.7%

Shares of NYSE:EFC traded up $0.09 during trading hours on Wednesday, hitting $12.80. The company's stock had a trading volume of 835,451 shares, compared to its average volume of 1,839,940. Ellington Financial has a 52 week low of $11.27 and a 52 week high of $14.12. The company has a debt-to-equity ratio of 11.02, a current ratio of 47.25 and a quick ratio of 47.25. The company has a market capitalization of $1.59 billion, a price-to-earnings ratio of 10.40 and a beta of 0.94. The firm's fifty day moving average price is $12.26 and its 200 day moving average price is $13.12.

Ellington Financial (NYSE:EFC - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The financial services provider reported $0.47 EPS for the quarter, beating the consensus estimate of $0.44 by $0.03. Ellington Financial had a net margin of 53.10% and a return on equity of 14.62%. The business had revenue of $96.44 million during the quarter, compared to analyst estimates of $132.07 million. As a group, research analysts expect that Ellington Financial will post 1.38 EPS for the current year.

Ellington Financial Announces Dividend

The firm also recently declared a monthly dividend, which will be paid on Friday, May 29th. Stockholders of record on Thursday, April 30th will be issued a $0.13 dividend. The ex-dividend date is Thursday, April 30th. This represents a c) annualized dividend and a dividend yield of 12.2%. Ellington Financial's payout ratio is currently 126.83%.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Ellington Financial in a research note on Wednesday, January 21st. Wall Street Zen downgraded shares of Ellington Financial from a "hold" rating to a "sell" rating in a research note on Saturday, March 7th. Three analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $14.56.

Institutional Investors Weigh In On Ellington Financial

Several large investors have recently modified their holdings of EFC. Daytona Street Capital LLC bought a new stake in shares of Ellington Financial in the 4th quarter valued at about $34,000. REAP Financial Group LLC purchased a new position in shares of Ellington Financial in the 4th quarter worth approximately $36,000. Danske Bank A S purchased a new position in shares of Ellington Financial in the 3rd quarter worth approximately $44,000. Huntington National Bank grew its position in shares of Ellington Financial by 35.3% in the 4th quarter. Huntington National Bank now owns 4,136 shares of the financial services provider's stock worth $56,000 after buying an additional 1,078 shares during the last quarter. Finally, Hantz Financial Services Inc. grew its position in shares of Ellington Financial by 535.9% in the 3rd quarter. Hantz Financial Services Inc. now owns 6,181 shares of the financial services provider's stock worth $80,000 after buying an additional 5,209 shares during the last quarter. Institutional investors own 55.62% of the company's stock.

Ellington Financial Company Profile

Ellington Financial, Inc NYSE: EFC is a mortgage real estate investment trust (REIT) that focuses on generating attractive risk-adjusted returns through investments in residential and commercial mortgage-related assets. Established in 2013, the company is externally managed by Ellington Financial Management, L.P., a subsidiary of Ellington Management Group, an alternative asset management firm. EFC's core strategy centers on actively acquiring and managing agency and non-agency residential mortgage-backed securities (MBS), mortgage servicing rights, residential whole loans, and other structured finance instruments, including asset-backed securities and commercial mortgage-backed securities (CMBS).

The company employs leverage and structured financing tools—such as repurchase agreements and secured credit facilities—to enhance portfolio yield while maintaining focus on risk mitigation.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.