Ellington Credit (NYSE:EARN) Stock Price Crosses Below Two Hundred Day Moving Average - Here's Why

Key Points

• Ellington Credit shares fell below their 200-day moving average, declining to $3.51 compared with the $4.41 average; the stock last traded near $3.57.
• Piper Sandler lowered its price target from $5.00 to $4.50 but maintained an “overweight” rating. Analysts overall retain a consensus “Buy” rating with an average target of $5.25.
• The REIT reported weaker-than-expected quarterly results, with EPS of $0.15 versus $0.20 expected and revenue of $6.08 million versus $10.57 million expected, while announcing a monthly $0.08 dividend yielding about 26.9%.

Ellington Credit Company (NYSE:EARN - Get Free Report) shares crossed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $4.41 and traded as low as $3.51. Ellington Credit shares last traded at $3.5650, with a volume of 306,751 shares traded.

Wall Street Analysts Forecast Growth

Separately, Piper Sandler cut their price objective on shares of Ellington Credit from $5.00 to $4.50 and set an "overweight" rating on the stock in a research report on Monday. One analyst has rated the stock with a Buy rating. According to data from MarketBeat, the stock has a consensus rating of "Buy" and an average price target of $5.25.

Ellington Credit Stock Performance

The business's fifty day moving average price is $4.10 and its 200-day moving average price is $4.41. The stock has a market cap of $136.08 million, a PE ratio of -3.64 and a beta of 1.32.

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

Ellington Credit Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Monday, November 30th. Shareholders of record on Friday, October 30th will be given a $0.08 dividend. This represents a $0.96 dividend on an annualized basis and a yield of 26.9%. The ex-dividend date of this dividend is Friday, October 30th. Ellington Credit's payout ratio is -97.96%.

Institutional Investors Weigh In On Ellington Credit

A number of hedge funds have recently added to or reduced their stakes in EARN. Focus Financial Network Inc. lifted its holdings in shares of Ellington Credit by 29.3% during the 3rd quarter. Focus Financial Network Inc. now owns 45,038 shares of the real estate investment trust's stock valued at $182,000 after buying an additional 10,194 shares during the period. McIlrath & Eck LLC boosted its stake in shares of Ellington Credit by 122.4% in the 1st 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 during the last quarter. Waverly Advisors LLC boosted its stake in shares of Ellington Credit by 85.8% in the 1st 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 during the last quarter. Finally, World Investment Advisors bought a new stake in shares of Ellington Credit in the fourth quarter worth $115,000. 20.40% of the stock is currently owned by hedge funds and other institutional investors.

About Ellington Credit

Ellington Credit Company NYSE: EARN is a real estate investment trust focused on the residential mortgage market. The company invests in residential mortgage assets, including residential mortgage-backed securities and residential mortgage loans, with an emphasis on assets that generate income from housing-related credit and financing activities.

Its portfolio may include agency and non-agency mortgage-backed securities, as well as other residential mortgage investments. Agency securities are generally backed or guaranteed by U.S.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.