Ellington Credit (NYSE:EARN) Stock Price Crosses Below 200 Day Moving Average – Here’s Why

Ellington Credit Company (NYSE:EARN) crossed below its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $5.01 and traded as low as $4.66. Ellington Credit shares last traded at $4.7250, with a volume of 262,165 shares.

Analysts Set New Price Targets

Several research analysts have commented on EARN shares. Piper Sandler cut their target price 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 upgraded Ellington Credit from a “sell” rating to a “hold” rating in a research note on Saturday, April 4th. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, Ellington Credit has a consensus rating of “Moderate Buy” and an average target price of $5.75.

Ellington Credit Trading Up 1.6%

The firm has a fifty day simple moving average of $4.69 and a two-hundred day simple moving average of $5.01. The stock has a market cap of $177.57 million, a PE ratio of -4.54 and a beta of 1.26.

Ellington Credit (NYSE:EARN) last released its quarterly earnings results on Wednesday, May 20th. The real estate investment trust reported $0.19 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.03). Ellington Credit had a negative net margin of 75.00% and a positive return on equity of 16.47%. The business had revenue of $9.87 million during the quarter, compared to analysts’ expectations of $10.57 million.

Ellington Credit Announces Dividend

The firm also recently declared a monthly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Friday, May 29th will be issued a $0.08 dividend. The ex-dividend date of this dividend is Friday, May 29th. This represents a c) annualized dividend and a dividend yield of 20.3%. Ellington Credit’s dividend payout ratio (DPR) is presently -92.31%.

Institutional Trading of Ellington Credit

Several institutional investors and hedge funds have recently modified their holdings of EARN. Millennium Management LLC raised its holdings in shares of Ellington Credit by 485.8% in the 1st quarter. Millennium Management LLC now owns 932,326 shares of the real estate investment trust’s stock valued at $5,044,000 after acquiring an additional 773,169 shares in the last quarter. Jane Street Group LLC raised its holdings in shares of Ellington Credit by 415.4% during the 1st quarter. Jane Street Group LLC now owns 379,906 shares of the real estate investment trust’s stock valued at $2,055,000 after buying an additional 306,192 shares in the last quarter. Waverly Advisors LLC raised its holdings in shares of Ellington Credit by 85.8% during the 1st quarter. Waverly Advisors LLC now owns 167,250 shares of the real estate investment trust’s stock valued at $741,000 after buying an additional 77,250 shares in the last quarter. HighTower Advisors LLC purchased a new position in shares of Ellington Credit during the 4th quarter valued at about $369,000. Finally, Goldman Sachs Group Inc. raised its holdings in shares of Ellington Credit by 56.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 126,864 shares of the real estate investment trust’s stock valued at $686,000 after buying an additional 45,845 shares in the last quarter. Hedge funds and other 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.