Ellington Financial (NYSE:EFC) Posts Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Key Points

• Ellington Financial beat quarterly estimates: The company reported $0.60 in EPS, exceeding the $0.46 consensus by $0.14, while revenue of $134.11 million also surpassed expectations of $114.59 million.
• Shareholders will receive a monthly dividend: Ellington declared a $0.13-per-share dividend, representing an annualized yield of approximately 11.5%, with a payout ratio of 93.98%.
• Analyst sentiment remains cautious: EFC has a consensus “Hold” rating from five analysts, with one Buy and four Holds, and an average price target of $13.88.

Ellington Financial (NYSE:EFC - Get Free Report) posted its quarterly earnings results on Thursday. The financial services provider reported $0.60 earnings per share for the quarter, topping the consensus estimate of $0.46 by $0.14, Zacks reports. Ellington Financial had a return on equity of 17.13% and a net margin of 52.43%.The company had revenue of $134.11 million during the quarter, compared to the consensus estimate of $114.59 million.

Ellington Financial Price Performance

Ellington Financial stock traded up $0.46 during midday trading on Friday, reaching $13.60. 2,231,489 shares of the stock were exchanged, compared to its average volume of 1,146,854. 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 10.18, a quick ratio of 42.65 and a current ratio of 42.65. The firm has a market cap of $1.71 billion, a PE ratio of 8.29 and a beta of 0.94. The company's fifty day moving average is $13.50 and its 200-day moving average is $13.03.

Ellington Financial Announces Dividend

The company also recently disclosed a monthly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, July 31st will be paid a dividend of $0.13 per share. The ex-dividend date of this dividend is Friday, July 31st. This represents a c) annualized dividend and a yield of 11.5%. Ellington Financial's payout ratio is currently 93.98%.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on EFC shares. BTIG Research lowered shares of Ellington Financial from a "buy" rating to a "neutral" rating in a research report on Wednesday, June 17th. Zacks Research lowered shares of Ellington Financial from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. Weiss Ratings upgraded shares of Ellington Financial from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, May 14th. Finally, Wall Street Zen raised shares of Ellington Financial from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. One analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, Ellington Financial presently has a consensus rating of "Hold" and an average price target of $13.88.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in EFC. Danske Bank A S purchased a new stake in shares of Ellington Financial in the third quarter worth $44,000. Tower Research Capital LLC TRC increased its stake in Ellington Financial by 227.6% in the 2nd quarter. Tower Research Capital LLC TRC now owns 6,853 shares of the financial services provider's stock worth $89,000 after acquiring an additional 4,761 shares during the last quarter. Sei Investments Co. purchased a new stake in shares of Ellington Financial in the 2nd quarter valued at about $131,000. Quantbot Technologies LP purchased a new stake in shares of Ellington Financial in the 2nd quarter valued at about $138,000. Finally, one8zero8 LLC purchased a new stake in shares of Ellington Financial in the 4th quarter valued at about $149,000. 55.62% of the stock is currently owned by hedge funds and other institutional investors.

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.

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