Ellington Credit (NYSE:EARN) Shares Pass Below Two Hundred Day Moving Average – Here’s Why

Ellington Credit Company (NYSE:EARN)’s share price crossed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $5.20 and traded as low as $4.39. Ellington Credit shares last traded at $4.4250, with a volume of 434,675 shares traded.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the company. Piper Sandler reduced their price target on Ellington Credit from $6.00 to $5.50 and set an “overweight” rating for the company in a research report on Friday, March 6th. UBS Group set a $6.00 target price on Ellington Credit in a research note on Tuesday, December 23rd. Finally, Wall Street Zen lowered Ellington Credit from a “hold” rating to a “sell” rating in a report on Saturday, March 14th. One analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, Ellington Credit has an average rating of “Moderate Buy” and a consensus price target of $5.75.

Ellington Credit Trading Down 0.1%

The company’s fifty day simple moving average is $4.96 and its 200 day simple moving average is $5.20. The stock has a market capitalization of $166.24 million, a P/E ratio of -10.79 and a beta of 1.29.

Ellington Credit (NYSE:EARN) last released its quarterly earnings results on Wednesday, March 4th. The real estate investment trust reported $0.21 earnings per share for the quarter, missing the consensus estimate of $0.24 by ($0.03). Ellington Credit had a positive return on equity of 16.47% and a negative net margin of 34.31%.The firm had revenue of $11.12 million during the quarter, compared to the consensus estimate of $12.71 million. Equities research analysts predict that Ellington Credit Company will post 1.17 earnings per share for the current year.

Ellington Credit Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Tuesday, March 31st will be paid a $0.08 dividend. This represents a c) dividend on an annualized basis and a yield of 21.7%. The ex-dividend date is Tuesday, March 31st. Ellington Credit’s dividend payout ratio is currently -234.15%.

Institutional Trading of Ellington Credit

Large investors have recently modified their holdings of the business. Millennium Management LLC grew its holdings in shares of Ellington Credit by 485.8% during the first quarter. Millennium Management LLC now owns 932,326 shares of the real estate investment trust’s stock worth $5,044,000 after purchasing an additional 773,169 shares in the last quarter. Jane Street Group LLC raised its stake 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 in the last quarter. Clear Harbor Asset Management LLC lifted its position in Ellington Credit by 7.3% during 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 purchasing an additional 23,775 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in Ellington Credit by 56.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 126,864 shares of the real estate investment trust’s stock worth $686,000 after buying an additional 45,845 shares in the last quarter. Finally, Osaic Holdings Inc. grew its stake in Ellington Credit by 60.3% in the 2nd quarter. Osaic Holdings Inc. now owns 104,689 shares of the real estate investment trust’s stock worth $602,000 after buying an additional 39,392 shares in the last quarter. Institutional investors own 20.40% of the company’s stock.

About Ellington Credit

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.