Short Interest in Ellington Credit Company (NYSE:EARN) Increases By 28.5%

Key Points

• Short interest in Ellington Credit Company increased by 28.5% in August, totaling 306,100 shares as of August 31st, indicating growing bearish sentiment among investors.
• Ellington Credit recently reported quarterly earnings of $0.18 per share, missing the consensus estimate, with revenue of $9.87 million compared to expectations of $12.15 million.
• The company declared a $0.08 dividend payable on October 31st, which represents a striking 1,700.0% dividend yield given its high payout ratio of 533.33%.

Ellington Credit Company (NYSE:EARN - Get Free Report) saw a large growth in short interest during the month of August. As of August 31st, there was short interest totaling 306,100 shares, a growth of 28.5% from the August 15th total of 238,300 shares. Currently, 0.8% of the shares of the company are sold short. Based on an average daily trading volume, of 313,800 shares, the days-to-cover ratio is currently 1.0 days. Based on an average daily trading volume, of 313,800 shares, the days-to-cover ratio is currently 1.0 days. Currently, 0.8% of the shares of the company are sold short.

Ellington Credit Stock Performance

Ellington Credit stock traded up $0.04 during mid-day trading on Wednesday, reaching $5.71. The company's stock had a trading volume of 136,993 shares, compared to its average volume of 287,512. The company has a market capitalization of $214.46 million, a P/E ratio of 31.72 and a beta of 1.31. The firm's fifty day moving average price is $5.78 and its two-hundred day moving average price is $5.66. Ellington Credit has a 12-month low of $4.32 and a 12-month high of $7.11.

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

Ellington Credit Announces Dividend

The company also recently disclosed a sep 25 dividend, which will be paid on Friday, October 31st. Stockholders of record on Tuesday, September 30th will be given a $0.08 dividend. This represents a dividend yield of 1,700.0%. The ex-dividend date is Tuesday, September 30th. Ellington Credit's dividend payout ratio (DPR) is 533.33%.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the stock. UBS Group increased their target price on shares of Ellington Credit from $5.50 to $5.75 and gave the company a "neutral" rating in a research report on Wednesday, July 16th. Wall Street Zen raised Ellington Credit from a "sell" rating to a "hold" rating in a report on Saturday. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $6.13.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Jane Street Group LLC boosted its stake in Ellington Credit by 177.5% during the fourth quarter. Jane Street Group LLC now owns 73,714 shares of the real estate investment trust's stock valued at $488,000 after buying an additional 47,151 shares during the period. Ameriprise Financial Inc. purchased a new position in shares of Ellington Credit in the 4th quarter worth about $197,000. Inspire Advisors LLC lifted its position in Ellington Credit by 16.3% in the 1st quarter. Inspire Advisors LLC now owns 17,203 shares of the real estate investment trust's stock worth $93,000 after buying an additional 2,407 shares during the last quarter. Castlekeep Investment Advisors LLC grew its position in Ellington Credit by 1,107.9% during 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 acquiring an additional 165,714 shares during the last quarter. Finally, OMERS ADMINISTRATION Corp increased its holdings in shares of 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 worth $1,008,000 after buying an additional 94,900 shares during the period. 20.40% of the stock is owned by institutional investors.

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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