Ellington Financial (NYSE:EFC) Shares Cross Above 200 Day Moving Average - Should You Sell?

Key Points

• Ellington Financial shares moved above their 200-day moving average, trading as high as $13.52 and last changing hands at $13.4550. The move came with volume of 770,066 shares.
• Analyst sentiment is mixed but mostly neutral, with one Buy rating and four Hold ratings. The consensus price target is $13.88, while recent firms including BTIG and Zacks cut their ratings.
• The company posted strong recent results and pays a high dividend, reporting Q1 EPS of $0.55 versus $0.42 expected and revenue of $188.83 million. It also announced a monthly $0.13 dividend, implying an annualized yield of 11.6%.

Ellington Financial Inc. (NYSE:EFC - Get Free Report)'s share price crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $13.05 and traded as high as $13.52. Ellington Financial shares last traded at $13.4550, with a volume of 770,066 shares traded.

Wall Street Analysts Forecast Growth

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

Ellington Financial Stock Down 0.3%

The firm has a market capitalization of $1.69 billion, a price-to-earnings ratio of 8.11 and a beta of 0.93. 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 business's 50 day moving average is $13.53 and its 200-day moving average is $13.05.

Ellington Financial (NYSE:EFC - Get Free Report) last released its earnings results on Tuesday, May 5th. The financial services provider reported $0.55 earnings per share for the quarter, topping analysts' consensus estimates of $0.42 by $0.13. Ellington Financial had a net margin of 72.08% and a return on equity of 15.81%. The firm had revenue of $188.83 million during the quarter, compared to analyst estimates of $114.09 million. Equities analysts anticipate that Ellington Financial Inc. will post 1.95 EPS for the current fiscal year.

Ellington Financial Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Monday, August 31st. Stockholders of record on Friday, July 31st will be paid a $0.13 dividend. The ex-dividend date is Friday, July 31st. This represents a c) dividend on an annualized basis and a dividend yield of 11.6%. Ellington Financial's payout ratio is presently 93.98%.

Institutional Trading of Ellington Financial

Hedge funds have recently added to or reduced their stakes in the business. Amundi grew its holdings in Ellington Financial by 106.8% in the 4th quarter. Amundi now owns 1,497,373 shares of the financial services provider's stock valued at $20,334,000 after buying an additional 773,291 shares during the last quarter. Hudson Bay Capital Management LP bought a new position in Ellington Financial in the 4th quarter worth approximately $6,080,000. First Trust Advisors LP lifted its holdings in shares of Ellington Financial by 263.7% during the first quarter. First Trust Advisors LP now owns 593,740 shares of the financial services provider's stock worth $7,036,000 after buying an additional 430,477 shares during the last quarter. Millennium Management LLC acquired a new position in shares of Ellington Financial during the third quarter worth approximately $4,941,000. Finally, Bank of America Corp DE lifted its holdings in shares of Ellington Financial by 234.3% during the first quarter. Bank of America Corp DE now owns 537,199 shares of the financial services provider's stock worth $6,366,000 after buying an additional 376,528 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.

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