Ellington Credit (NYSE:EARN) Stock Crosses Below Two Hundred Day Moving Average – What’s Next?

Ellington Credit Company (NYSE:EARN)’s stock price passed below its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $5.03 and traded as low as $4.86. Ellington Credit shares last traded at $4.9330, with a volume of 312,331 shares changing hands.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the company. Piper Sandler decreased their price target on Ellington Credit from $6.00 to $5.50 and set an “overweight” rating for the company in a research note on Friday, March 6th. Wall Street Zen raised shares of Ellington Credit from a “sell” rating to a “hold” rating in a research report on Saturday, April 4th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $5.75.

Ellington Credit Price Performance

The firm has a fifty day moving average of $4.64 and a two-hundred day moving average of $5.03. The stock has a market capitalization of $185.38 million, a P/E ratio of -4.74 and a beta of 1.27.

Ellington Credit (NYSE:EARN) last issued its earnings results on Tuesday, May 19th. The real estate investment trust reported $0.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.22 by ($0.03). The business had revenue of ($29.57) million for the quarter, compared to the consensus estimate of $10.57 million. Ellington Credit had a positive return on equity of 16.47% and a negative net margin of 90.90%.

Ellington Credit Announces Dividend

The firm also recently declared a monthly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th will be given a $0.08 dividend. This represents a c) annualized dividend and a dividend yield of 19.5%. The ex-dividend date of this dividend is Friday, May 29th. Ellington Credit’s dividend payout ratio is presently -92.31%.

Hedge Funds Weigh In On Ellington Credit

Several institutional investors have recently bought and sold shares of the business. McIlrath & Eck LLC lifted its holdings in Ellington Credit by 122.4% during the first 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 period. Virtu Financial LLC purchased a new position in shares of Ellington Credit in the 4th quarter valued at $57,000. Quadrature Capital Ltd purchased a new position in shares of Ellington Credit in the 4th quarter valued at $75,000. Engineers Gate Manager LP bought a new position in shares of Ellington Credit in the 2nd quarter worth $83,000. Finally, World Investment Advisors bought a new position in shares of Ellington Credit in the 4th quarter worth $115,000. 20.40% of the stock is owned by hedge funds and other institutional investors.

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.