Ellington Financial Target of Unusually Large Options Trading (NYSE:EFC)

Key Points

• Ellington Financial experienced an extraordinary 12,678% increase in put options trading, with investors purchasing 15,589 put options on Thursday.
• The company's recent earnings report revealed a $0.47 EPS, surpassing expectations of $0.40, but revenue of $92.54 million fell short of the anticipated $112.48 million.
• Ellington Financial announced a dividend of $0.13, set to be paid on October 31, with an ex-dividend date of September 30, representing a remarkable yield of 1,140.0%.

Ellington Financial Inc. (NYSE:EFC - Get Free Report) saw unusually large options trading activity on Thursday. Traders purchased 15,589 put options on the stock. This represents an increase of 12,678% compared to the average volume of 122 put options.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on EFC. Zacks Research upgraded shares of Ellington Financial to a "strong-buy" rating in a research report on Tuesday, August 12th. UBS Group raised their price objective on shares of Ellington Financial from $12.50 to $13.50 and gave the stock a "neutral" rating in a report on Wednesday, September 3rd. Piper Sandler reduced their price objective on shares of Ellington Financial from $15.00 to $14.50 and set an "overweight" rating for the company in a report on Tuesday, July 1st. Finally, Jones Trading raised shares of Ellington Financial from a "hold" rating to a "buy" rating and set a $14.25 price objective for the company in a report on Wednesday, August 13th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Buy" and an average price target of $14.46.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. CWM LLC raised its holdings in Ellington Financial by 67.6% in the 2nd quarter. CWM LLC now owns 2,010 shares of the financial services provider's stock valued at $26,000 after buying an additional 811 shares during the last quarter. Huntington National Bank boosted its position in Ellington Financial by 134.4% in the second quarter. Huntington National Bank now owns 2,752 shares of the financial services provider's stock worth $36,000 after purchasing an additional 1,578 shares during the last quarter. Steward Partners Investment Advisory LLC boosted its holdings in shares of Ellington Financial by 93.9% in the 2nd quarter. Steward Partners Investment Advisory LLC now owns 3,582 shares of the financial services provider's stock worth $47,000 after buying an additional 1,735 shares during the last quarter. State of Wyoming purchased a new position in shares of Ellington Financial in the 4th quarter worth about $56,000. Finally, GAMMA Investing LLC raised its stake in Ellington Financial by 243.8% in the 1st quarter. GAMMA Investing LLC now owns 4,800 shares of the financial services provider's stock valued at $64,000 after acquiring an additional 3,404 shares during the period. Institutional investors own 55.62% of the company's stock.

Ellington Financial Trading Down 0.5%

Shares of EFC traded down $0.07 on Friday, reaching $13.16. 3,147,385 shares of the company's stock were exchanged, compared to its average volume of 1,457,971. The stock has a market capitalization of $1.31 billion, a P/E ratio of 10.61 and a beta of 1.00. The business has a 50 day moving average price of $13.39 and a two-hundred day moving average price of $13.04. The company has a current ratio of 46.78, a quick ratio of 46.78 and a debt-to-equity ratio of 10.96. Ellington Financial has a 12 month low of $11.12 and a 12 month high of $14.40.

Ellington Financial (NYSE:EFC - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The financial services provider reported $0.47 earnings per share for the quarter, beating analysts' consensus estimates of $0.40 by $0.07. The firm had revenue of $92.54 million for the quarter, compared to analyst estimates of $112.48 million. Ellington Financial had a net margin of 89.52% and a return on equity of 13.56%. Research analysts anticipate that Ellington Financial will post 1.38 earnings per share for the current year.

Ellington Financial Dividend Announcement

The company also recently disclosed a sep 25 dividend, which will be paid on Friday, October 31st. Shareholders of record on Tuesday, September 30th will be paid a dividend of $0.13 per share. This represents a yield of 1,140.0%. The ex-dividend date is Tuesday, September 30th. Ellington Financial's dividend payout ratio is presently 125.81%.

Ellington Financial Company Profile

Ellington Financial Inc, through its subsidiary, Ellington Financial Operating Partnership LLC, acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets in the United States. The company acquires and manages residential mortgage-backed securities (RMBS) backed by prime jumbo, Alt-A, manufactured housing, and subprime mortgage; RMBS for which the principal and interest payments are guaranteed by the U.S.