Ellington Credit (EARN) Stock Price, News & Analysis

Company Overview

Ellington Credit Income Fund (NYSE: EARN) is a closed-end management investment company that seeks to generate current income through a diversified portfolio of mortgage- and asset-backed securities. The fund primarily invests in residential mortgage-backed securities (RMBS) and asset-backed securities (ABS), with additional exposure to commercial mortgage-backed securities (CMBS) and related structured credit instruments. To enhance income and manage risk, the fund employs leverage and derivative strategies such as interest rate swaps and credit default swaps, allowing it to adjust duration and credit exposure dynamically.

The fund is externally managed and advised by Ellington Management Group, LLC, an established investment firm specializing in mortgage credit and structured products. The advisory team applies rigorous credit research and quantitative analysis to identify relative-value opportunities in the U.S. mortgage markets. Portfolio construction emphasizes a risk-adjusted approach, balancing yield enhancement with capital preservation to navigate changing interest rate and credit environments.

Since its inception, Ellington Credit Income Fund has focused on U.S. residential and commercial mortgage markets, building a diversified portfolio to mitigate concentration risk. Holdings range from sponsored securitizations and seasoned bonds to bespoke credit structures, with the goal of capturing spread dislocations and credit opportunities. Active management allows the fund to reposition exposures in response to market developments and evolving economic conditions.

The fund offers investors a closed-end structure that combines daily liquidity with the potential for market-driven discounts or premiums to net asset value. Its distribution policy targets regular monthly payouts designed to meet income objectives, making it a candidate for investors seeking yield-oriented strategies in a low-interest-rate environment without the complexity of directly managing leveraged mortgage positions.

Key Stats

• Today's Range: $5.10 to $5.15
• 50-Day Range: $5.01 to $5.88
• 52-Week Range: $4.32 to $7.11
• Volume: 220,445 shs
• Average Volume: 350,123 shs
• Market Capitalization: $192.87 million
• P/E Ratio: 28.53
• Dividend Yield: 18.70%
• Price Target: $5.88
• Consensus Rating: Moderate Buy

Ellington Credit Stock Analysis - MarketRank™

Ellington Credit scored higher than 52% of companies evaluated by MarketBeat, and ranked 585th out of 929 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.6 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Ellington Credit has received a consensus rating of Moderate Buy. The company's average rating score is 2.50, and is based on 1 buy rating, 1 hold rating, and no sell ratings.

Upside Potential

Ellington Credit has a consensus price target of $5.88, representing about 14.4% upside from its current price of $5.14.

Amount of Analyst Coverage

Ellington Credit has only been the subject of 1 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.3 / 5
• Proj. Earnings Growth: -3.42%

Earnings Growth

Earnings for Ellington Credit are expected to decrease by -3.42% in the coming year, from $1.17 to $1.13 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Ellington Credit is 28.53, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 65.76.

Price to Earnings Ratio vs. Sector

The P/E ratio of Ellington Credit is 28.53, which means that it is trading at a more expensive P/E ratio than the Finance sector average P/E ratio of about 21.12.

Price to Book Value per Share Ratio

Ellington Credit has a P/B Ratio of 0.77. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

0.70% of the outstanding shares of Ellington Credit have been sold short.

Short Interest Ratio / Days to Cover

Ellington Credit has a short interest ratio ("days to cover") of 0.8, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Ellington Credit has recently increased by 26.38%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Leadership

Ellington Credit is a leading dividend payer. It pays a dividend yield of 18.68%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Ellington Credit does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Ellington Credit is 533.33%. Payout ratios above 75% are not desirable because they may not be sustainable.

Dividend Sustainability

Based on EPS estimates, Ellington Credit will have a dividend payout ratio of 84.96% in the coming year. This indicates that Ellington Credit may not be able to sustain their current dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

0.70% of the outstanding shares of Ellington Credit have been sold short.

Short Interest Ratio / Days to Cover

Ellington Credit has a short interest ratio ("days to cover") of 0.8, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Ellington Credit has recently increased by 26.38%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.5 / 5
• News Sentiment: 0.55

News Sentiment

Ellington Credit has a news sentiment score of 0.55. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This news sentiment score is similar to the average news sentiment of Finance companies.

News Coverage This Week

MarketBeat has tracked 3 news articles for Ellington Credit this week, compared to 3 articles on an average week.

Search Interest

36 people have searched for EARN on MarketBeat in the last 30 days. This is an increase of 13% compared to the previous 30 days.

MarketBeat Follows

5 people have added Ellington Credit to their MarketBeat watchlist in the last 30 days. This is an increase of 400% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: Acquiring Shares

Insider Buying vs. Insider Selling

In the past three months, Ellington Credit insiders have bought more of their company's stock than they have sold. Specifically, they have bought $38,350.00 in company stock and sold $0.00 in company stock.

Percentage Held by Insiders

Only 1.40% of the stock of Ellington Credit is held by insiders.

Percentage Held by Institutions

Only 20.40% of the stock of Ellington Credit is held by institutions.

EARN Stock Analysis - Frequently Asked Questions

How have EARN shares performed this year?

Ellington Credit's stock was trading at $6.62 on January 1st, 2025. Since then, EARN shares have decreased by 22.4% and is now trading at $5.1350.

How were Ellington Credit's earnings last quarter?

Ellington Credit Company (NYSE:EARN) issued its quarterly earnings results on Tuesday, August, 19th. The real estate investment trust reported $0.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.20 by $0.02. The real estate investment trust earned $9.87 million during the quarter, compared to analyst estimates of $12.15 million. Ellington Credit had a trailing twelve-month return on equity of 15.90% and a net margin of 19.24%.
Read the conference call transcript.

How do I buy shares of Ellington Credit?

Shares of EARN stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Ellington Credit own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Ellington Credit investors own include AGNC Investment (AGNC), Energy Transfer (ET), Oxford Lane Capital (OXLC), Orchid Island Capital (ORC), Ellington Financial (EFC), Cornerstone Total Return Fund (CRF) and Cornerstone Strategic Investment Fund (CLM).

Company Calendar

• Last Earnings: 8/19/2025
• Record date for 10/31 Dividend: 9/30/2025
• Ex-Dividend for 10/31 Dividend: 9/30/2025
• Today: 10/20/2025
• Record date for 11/28 Dividend: 10/31/2025
• Ex-Dividend for 11/28 Dividend: 10/31/2025
• Dividend Payable: 10/31/2025
• Next Earnings (Estimated): 11/11/2025
• Dividend Payable: 11/28/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: REIT - MTGE TRUST
• Sub-Industry: Trading
• Current Symbol: NYSE:EARN
• CIK: 1560672
• Web: www.earnreit.com
• Phone: (203) 698-1200
• Fax: N/A
• Employees: 170
• Year Founded: 2012

Price Target and Rating

• Average Price Target for Ellington Credit: $5.88
• High Price Target: $6.50
• Low Price Target: $5.25
• Potential Upside/Downside: +14.4%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.50
• Research Coverage: 2 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.18
• Trailing P/E Ratio: 28.53
• Forward P/E Ratio: 4.39
• P/E Growth: N/A
• Net Income: $6.59 million
• Net Margins: 19.24%
• Pretax Margin: N/A
• Return on Equity: 15.90%
• Return on Assets: 3.89%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: N/A
• Quick Ratio: N/A

Sales & Book Value

• Annual Sales: $15.07 million
• Price / Sales: 12.80
• Cash Flow: $1.08 per share
• Price / Cash Flow: 4.76
• Book Value: $6.64 per share
• Price / Book: 0.77

Miscellaneous

• Outstanding Shares: 37,560,000
• Free Float: 37,033,000
• Market Cap: $192.87 million
• Optionable: Optionable
• Beta: 1.33