Ellington Financial (NYSE:EFC) Releases Earnings Results, Beats Expectations By $0.13 EPS

Key Points

• EPS beat: Ellington reported $0.55 EPS, beating estimates by $0.13, and revenue of $171.83M versus $114.09M expected, with a 14.62% ROE and a 53.10% net margin.
• Dividend announced: The firm declared a monthly $0.13 dividend (record Apr 30, payable May 29), implying an 11.9% yield but a high payout ratio of 126.83%.
• Shares traded up ~0.8% to $13.11 (market cap $1.63B, P/E 10.66); analysts show a "Moderate Buy" consensus with an average price target of $14.56 amid mixed Buy/Hold ratings.

Ellington Financial (NYSE:EFC - Get Free Report) released its quarterly earnings results on Tuesday. The financial services provider reported $0.55 EPS for the quarter, topping analysts' consensus estimates of $0.42 by $0.13, FiscalAI reports. The company had revenue of $171.83 million for the quarter, compared to analyst estimates of $114.09 million. Ellington Financial had a return on equity of 14.62% and a net margin of 53.10%.

Ellington Financial Stock Up 0.8%

Shares of NYSE EFC traded up $0.10 during midday trading on Tuesday, reaching $13.11. The company's stock had a trading volume of 935,275 shares, compared to its average volume of 1,951,047. The company has a current ratio of 47.25, a quick ratio of 47.25 and a debt-to-equity ratio of 11.02. Ellington Financial has a fifty-two week low of $11.27 and a fifty-two week high of $14.12. The stock has a 50 day simple moving average of $12.31 and a 200-day simple moving average of $13.10. The stock has a market capitalization of $1.63 billion, a price-to-earnings ratio of 10.66 and a beta of 0.94.

Ellington Financial Announces Dividend

The firm also recently disclosed 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) dividend on an annualized basis and a dividend yield of 11.9%. Ellington Financial's dividend payout ratio (DPR) is 126.83%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on EFC shares. Wall Street Zen cut shares of Ellington Financial from a "hold" rating to a "sell" rating in a research report on Saturday, March 7th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Ellington Financial in a research report on Wednesday, January 21st. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Ellington Financial presently has an average rating of "Moderate Buy" and an average price target of $14.56.

Institutional Investors Weigh In On Ellington Financial

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Danske Bank A S acquired a new stake in Ellington Financial in the 3rd quarter valued at $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 valued at $89,000 after buying an additional 4,761 shares during the last quarter. Sei Investments Co. acquired a new stake in Ellington Financial in the 2nd quarter valued at $131,000. Quantbot Technologies LP acquired a new stake in Ellington Financial in the 2nd quarter valued at $138,000. Finally, one8zero8 LLC acquired a new position in shares of Ellington Financial during the 4th quarter worth approximately $149,000. 55.62% of the stock is currently owned by institutional investors and hedge funds.

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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