Artemis Investment Management LLP Takes Position in Ellington Financial Inc. $EFC

Key Points

• Artemis Investment Management LLP bought a new position of 195,443 shares in Ellington Financial (~$2.65M), representing about 0.17% of the company at the end of the quarter.
• Ellington declared a monthly dividend of $0.13 (annualized yield ~11.8%), but the dividend payout ratio is very high at 126.83%, raising questions about sustainability.
• The company beat EPS estimates ($0.47 vs. $0.44) while missing revenue expectations, and analysts carry a consensus of "Moderate Buy" with an average target price of $14.56.

Artemis Investment Management LLP purchased a new stake in shares of Ellington Financial Inc. (NYSE:EFC - Free Report) during the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 195,443 shares of the financial services provider's stock, valued at approximately $2,654,000. Artemis Investment Management LLP owned 0.17% of Ellington Financial at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of the business. Daytona Street Capital LLC purchased a new position in Ellington Financial during the 4th quarter valued at about $34,000. Danske Bank A S purchased a new stake in shares of Ellington Financial in the third quarter worth approximately $44,000. Hantz Financial Services Inc. boosted its holdings in shares of Ellington Financial by 535.9% during the third quarter. Hantz Financial Services Inc. now owns 6,181 shares of the financial services provider's stock worth $80,000 after purchasing an additional 5,209 shares during the period. Tower Research Capital LLC TRC boosted its holdings in shares of Ellington Financial by 227.6% during the second quarter. Tower Research Capital LLC TRC now owns 6,853 shares of the financial services provider's stock worth $89,000 after purchasing an additional 4,761 shares during the period. Finally, CWM LLC grew its position in Ellington Financial by 292.1% during the third quarter. CWM LLC now owns 7,881 shares of the financial services provider's stock valued at $102,000 after purchasing an additional 5,871 shares in the last quarter. 55.62% of the stock is owned by hedge funds and other institutional investors.

Ellington Financial Price Performance

Shares of EFC opened at $13.24 on Friday. The company has a debt-to-equity ratio of 11.02, a quick ratio of 47.25 and a current ratio of 47.25. The firm has a market cap of $1.65 billion, a PE ratio of 10.76 and a beta of 0.94. The firm's 50 day moving average price is $12.31 and its 200 day moving average price is $13.11. Ellington Financial Inc. has a twelve month low of $11.27 and a twelve month high of $14.12.

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

Ellington Financial Dividend Announcement

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on EFC shares. Wall Street Zen downgraded 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 note on Wednesday, January 21st. Three equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $14.56.

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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