Short Interest in Ellington Credit Company (NYSE:EARN) Decreases By 33.2%

Key Points

• Short interest in Ellington Credit Company decreased by 33.2% in August, falling from 356,600 shares to 238,300 shares.
• The company recently reported earnings of $0.18 per share, missing the consensus estimate of $0.20, along with a revenue of $9.87 million, below expectations of $12.15 million.
• Ellington Credit declared a monthly dividend of $0.08 per share, yielding 17.0%, with a payout ratio of 533.33%.

Ellington Credit Company (NYSE:EARN - Get Free Report) was the recipient of a significant decline in short interest during the month of August. As of August 15th, there was short interest totaling 238,300 shares, adeclineof33.2% from the July 31st total of 356,600 shares. Based on an average daily volume of 316,900 shares, the days-to-cover ratio is presently 0.8 days. Based on an average daily volume of 316,900 shares, the days-to-cover ratio is presently 0.8 days.

Ellington Credit Trading Down 0.4%

EARN stock traded down $0.03 on Friday, hitting $5.66. The company's stock had a trading volume of 544,061 shares, compared to its average volume of 346,853. The firm has a 50 day moving average of $5.80 and a two-hundred day moving average of $5.70. Ellington Credit has a 1 year low of $4.32 and a 1 year high of $7.11. The stock has a market cap of $212.40 million, a price-to-earnings ratio of 31.42 and a beta of 1.31.

Ellington Credit (NYSE:EARN - Get Free Report) last released its quarterly earnings results on Tuesday, August 19th. The real estate investment trust reported $0.18 EPS for the quarter, missing the consensus estimate of $0.20 by ($0.02). Ellington Credit had a return on equity of 15.90% and a net margin of 19.24%.The company had revenue of $9.87 million for the quarter, compared to analysts' expectations of $12.15 million. As a group, equities analysts forecast that Ellington Credit will post 1.17 EPS for the current fiscal year.

Ellington Credit Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Friday, August 29th will be paid a dividend of $0.08 per share. The ex-dividend date of this dividend is Friday, August 29th. This represents a c) dividend on an annualized basis and a dividend yield of 17.0%. Ellington Credit's dividend payout ratio is 533.33%.

Hedge Funds Weigh In On Ellington Credit

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Millennium Management LLC grew its holdings in Ellington Credit by 485.8% in the first quarter. Millennium Management LLC now owns 932,326 shares of the real estate investment trust's stock valued at $5,044,000 after purchasing an additional 773,169 shares during the last quarter. Delphi Financial Group Inc. grew its holdings in Ellington Credit by 230.8% in the second quarter. Delphi Financial Group Inc. now owns 608,700 shares of the real estate investment trust's stock valued at $3,500,000 after purchasing an additional 424,700 shares during the last quarter. Jane Street Group LLC grew its holdings in Ellington Credit by 415.4% in the first quarter. Jane Street Group LLC now owns 379,906 shares of the real estate investment trust's stock valued at $2,055,000 after purchasing an additional 306,192 shares during the last quarter. Castlekeep Investment Advisors LLC grew its holdings in Ellington Credit by 1,107.9% in the first quarter. Castlekeep Investment Advisors LLC now owns 180,672 shares of the real estate investment trust's stock valued at $977,000 after purchasing an additional 165,714 shares during the last quarter. Finally, OMERS ADMINISTRATION Corp grew its holdings in Ellington Credit by 103.8% in the first quarter. OMERS ADMINISTRATION Corp now owns 186,300 shares of the real estate investment trust's stock valued at $1,008,000 after purchasing an additional 94,900 shares during the last quarter. 20.40% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

EARN has been the subject of several recent analyst reports. Wall Street Zen cut Ellington Credit from a "hold" rating to a "sell" rating in a research note on Saturday, August 30th. UBS Group boosted their target price on Ellington Credit from $5.50 to $5.75 and gave the stock a "neutral" rating in a research note on Wednesday, July 16th. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat.com, Ellington Credit presently has an average rating of "Moderate Buy" and a consensus target price of $6.13.

About Ellington Credit

Ellington Credit Company, a real estate investment trust, acquires, invests in, and manages residential mortgage-and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), including agency pools and agency collateralized mortgage obligations (CMOs); and non-agency RMBS, such as non-agency CMOs, such as investment grade and non-investment grade.

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