Ellington Credit (NYSE:EARN) Share Price Breaks Below 200-Day Moving Average - Here's Why

Key Points

• Ellington Credit shares fell below their 200-day moving average, reaching $4.22 compared with the $4.50 average, and last traded at $4.2550.
• The company’s latest quarterly results missed expectations, with earnings of $0.15 per share versus the $0.20 consensus estimate and revenue of $6.08 million versus $10.57 million expected.
• Despite the weak results, analysts maintain a “Moderate Buy” consensus with a $5.50 average price target, while the company declared a monthly $0.08 dividend representing a 22.6% annualized yield.

Shares of Ellington Credit Company (NYSE:EARN - Get Free Report) crossed below its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $4.50 and traded as low as $4.22. Ellington Credit shares last traded at $4.2550, with a volume of 375,294 shares.

Analyst Upgrades and Downgrades

Separately, Piper Sandler lowered their price objective on Ellington Credit from $5.25 to $5.00 and set an "overweight" rating on the stock in a research note on Monday, July 13th. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, Ellington Credit presently has a consensus rating of "Moderate Buy" and an average target price of $5.50.

Ellington Credit Trading Up 1.1%

The company's fifty day moving average is $4.34 and its 200 day moving average is $4.50. The company has a market capitalization of $162.41 million, a P/E ratio of -4.34 and a beta of 1.28.

Ellington Credit (NYSE:EARN - Get Free Report) last issued its earnings results on Wednesday, August 12th. The real estate investment trust reported $0.15 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.20 by ($0.05). The business had revenue of $6.08 million for the quarter, compared to analyst estimates of $10.57 million.

Ellington Credit Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Friday, October 30th. Stockholders of record on Wednesday, September 30th will be given a $0.08 dividend. The ex-dividend date is Wednesday, September 30th. This represents a $0.96 annualized dividend and a dividend yield of 22.6%. Ellington Credit's payout ratio is -97.96%.

Institutional Trading of Ellington Credit

A number of institutional investors have recently added to or reduced their stakes in EARN. Focus Financial Network Inc. purchased a new position in Ellington Credit during the 2nd quarter valued at about $154,000. McIlrath & Eck LLC lifted its holdings in shares of Ellington Credit by 122.4% in the first quarter. McIlrath & Eck LLC now owns 10,969 shares of the real estate investment trust's stock worth $49,000 after buying an additional 6,038 shares in the last quarter. Waverly Advisors LLC lifted its holdings in shares of Ellington Credit by 85.8% in the first quarter. Waverly Advisors LLC now owns 167,250 shares of the real estate investment trust's stock worth $741,000 after buying an additional 77,250 shares in the last quarter. World Investment Advisors bought a new position in shares of Ellington Credit in the fourth quarter valued at approximately $115,000. Finally, Clear Harbor Asset Management LLC boosted its position in shares of Ellington Credit by 7.3% in the fourth quarter. Clear Harbor Asset Management LLC now owns 347,635 shares of the real estate investment trust's stock valued at $1,832,000 after acquiring an additional 23,775 shares during the period. Hedge funds and other institutional investors own 20.40% of the company's stock.

Ellington Credit Company Profile

Ellington Credit Company NYSE: EARN is a mortgage real estate investment trust that invests primarily in residential mortgage-related assets. The company seeks to generate income for shareholders through a portfolio that may include residential mortgage loans, residential mortgage-backed securities and other investments tied to the housing and consumer-credit markets.

Ellington Credit has historically focused on non-agency residential mortgage assets, including loans that are not guaranteed by government-sponsored entities.

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