Ellington Financial Inc. (NYSE:EFC) Short Interest Down 24.1% in April

Key Points

• Short interest fell 24.1% in April to 4,823,231 shares (about 4.0% of shares short), with a short-interest ratio of 4.0 days.
• Ellington announced a monthly dividend of $0.13 (ex-dividend Apr 30, payable May 29), implying an annualized yield of 11.8% but a high payout ratio of 126.83%.
• The company posted mixed results—EPS beat at $0.47 versus $0.44 consensus while revenue missed at $96.44M vs. $132.07M—and the stock trades around $13.22 with a MarketBeat consensus of “Moderate Buy” and an average target of $14.56.

Ellington Financial Inc. (NYSE:EFC - Get Free Report) saw a significant decline in short interest during the month of April. As of April 15th, there was short interest totaling 4,823,231 shares, a decline of 24.1% from the March 31st total of 6,356,062 shares. Currently, 4.0% of the company's shares are short sold. Based on an average daily trading volume, of 1,207,348 shares, the short-interest ratio is presently 4.0 days.

Ellington Financial Trading Down 0.9%

EFC traded down $0.12 during mid-day trading on Wednesday, hitting $13.22. 937,772 shares of the stock were exchanged, compared to its average volume of 1,978,273. The firm's fifty day moving average is $12.29 and its two-hundred day moving average is $13.11. Ellington Financial has a 1-year low of $11.27 and a 1-year high of $14.12. The company has a current ratio of 47.25, a quick ratio of 47.25 and a debt-to-equity ratio of 11.02. The company has a market cap of $1.65 billion, a PE ratio of 10.74 and a beta of 0.94.

Ellington Financial (NYSE:EFC - Get Free Report) last posted its earnings results on Wednesday, February 25th. The financial services provider reported $0.47 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.44 by $0.03. Ellington Financial had a return on equity of 14.62% and a net margin of 53.10%.The firm had revenue of $96.44 million for the quarter, compared to analyst estimates of $132.07 million. Equities analysts forecast that Ellington Financial will post 1.87 earnings per share for the current fiscal year.

Ellington Financial Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Friday, May 29th. Investors of record on Thursday, April 30th will be paid a dividend of $0.13 per share. The ex-dividend date of this dividend is Thursday, April 30th. This represents a c) annualized dividend and a yield of 11.8%. Ellington Financial's dividend payout ratio is presently 126.83%.

Analyst Ratings Changes

EFC has been the topic of several recent analyst reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Ellington Financial in a research note on Wednesday, January 21st. Wall Street Zen lowered 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 issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $14.56.

Hedge Funds Weigh In On Ellington Financial

Hedge funds have recently bought and sold shares of the company. Sound Income Strategies LLC increased its holdings in Ellington Financial by 267.4% during the 1st quarter. Sound Income Strategies LLC now owns 2,208 shares of the financial services provider's stock worth $26,000 after purchasing an additional 1,607 shares during the period. Strs Ohio increased its holdings in Ellington Financial by 21.8% during the 1st quarter. Strs Ohio now owns 21,200 shares of the financial services provider's stock worth $251,000 after purchasing an additional 3,800 shares during the period. Louisiana State Employees Retirement System purchased a new stake in Ellington Financial during the 1st quarter worth about $655,000. Brookstone Capital Management purchased a new stake in Ellington Financial during the 1st quarter worth about $158,000. Finally, Mercer Global Advisors Inc. ADV increased its holdings in Ellington Financial by 79.1% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 26,464 shares of the financial services provider's stock worth $359,000 after purchasing an additional 11,684 shares during the period. Institutional investors and hedge funds own 55.62% of the company's stock.

About Ellington Financial

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.

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