Ellington Financial Inc. $EFC Stake Boosted by State Street Corp

Key Points

• State Street increased its Ellington Financial stake by 7.5% in the second quarter to 4.95 million shares, while institutional investors overall own 55.62% of the company. BlackRock and Bank of New York Mellon also established new positions.
• Analysts remain cautious, with a consensus “Hold” rating and an average price target of $14.50. UBS raised its target to $14.50, while Zacks Research and BTIG Research downgraded the stock to neutral or hold.
• Ellington Financial reported quarterly EPS of $0.60, beating estimates of $0.46, and revenue of $134.11 million. The company announced a monthly dividend of $0.13 per share, equating to an annualized yield of approximately 12.6%.

State Street Corp increased its stake in Ellington Financial Inc. (NYSE:EFC - Free Report) by 7.5% during the second quarter, according to its most recent filing with the SEC. The fund owned 4,952,930 shares of the financial services provider's stock after buying an additional 347,567 shares during the quarter. State Street Corp owned 3.84% of Ellington Financial worth $68,043,000 at the end of the most recent quarter.

Several other institutional investors also recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new stake in Ellington Financial in the second quarter worth about $284,144,000. Bank of New York Mellon Corp purchased a new position in Ellington Financial in the second quarter valued at about $11,133,000. First Trust Advisors LP grew its position in shares of Ellington Financial by 263.7% during the 1st quarter. First Trust Advisors LP now owns 593,740 shares of the financial services provider's stock valued at $7,036,000 after acquiring an additional 430,477 shares during the period. Bank of America Corp DE grew its position in shares of Ellington Financial by 234.3% during the 1st quarter. Bank of America Corp DE now owns 537,199 shares of the financial services provider's stock valued at $6,366,000 after acquiring an additional 376,528 shares during the period. Finally, Legal & General Group Plc purchased a new stake in shares of Ellington Financial during the 2nd quarter worth approximately $3,695,000. Institutional investors own 55.62% of the company's stock.

Analysts Set New Price Targets

A number of research firms recently commented on EFC. Zacks Research cut shares of Ellington Financial from a "strong-buy" rating to a "hold" rating in a report on Monday, July 13th. Weiss Ratings reissued a "hold (c)" rating on shares of Ellington Financial in a report on Tuesday, August 11th. UBS Group raised their target price on Ellington Financial from $14.00 to $14.50 and gave the stock a "neutral" rating in a research report on Wednesday, August 19th. Finally, BTIG Research lowered Ellington Financial from a "buy" rating to a "neutral" rating in a research note on Wednesday, June 17th. Four research analysts have rated the stock with a Hold rating, According to MarketBeat, Ellington Financial has a consensus rating of "Hold" and an average price target of $14.50.

Ellington Financial Price Performance

Shares of NYSE:EFC opened at $12.36 on Friday. The firm has a market capitalization of $1.59 billion, a PE ratio of 7.54 and a beta of 0.94. The company has a quick ratio of 52.06, a current ratio of 52.06 and a debt-to-equity ratio of 10.39. The company has a 50-day moving average price of $13.29 and a two-hundred day moving average price of $13.10. 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 quarterly earnings results on Thursday, August 6th. The financial services provider reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.46 by $0.14. The company had revenue of $134.11 million for the quarter, compared to analyst estimates of $114.59 million. Ellington Financial had a net margin of 52.43% and a return on equity of 16.61%. Equities analysts forecast that Ellington Financial Inc. will post 2.13 EPS for the current year.

Ellington Financial Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th will be issued a dividend of $0.13 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $1.56 dividend on an annualized basis and a yield of 12.6%. Ellington Financial's payout ratio is presently 95.12%.

About Ellington Financial

Ellington Financial Inc is a specialty finance company that invests in a range of mortgage-related and other financial assets. Its portfolio may include residential and commercial mortgage loans, residential mortgage-backed securities, commercial mortgage-backed securities, consumer loans and related investments.

The company seeks to generate income and long-term returns by acquiring, financing and managing these assets. Ellington Financial also has exposure to mortgage lending activities through affiliated and owned operating businesses, including platforms involved in residential and reverse mortgage lending.

Founded in 2007, Ellington Financial is organized as a real estate investment trust and generally invests in assets tied to the U.S.

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