Ellington Credit (NYSE:EARN) Shares Pass Below 200 Day Moving Average – Should You Sell?

Ellington Credit Company (NYSE:EARN)’s share price passed below its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $4.87 and traded as low as $4.29. Ellington Credit shares last traded at $4.3850, with a volume of 231,910 shares changing hands.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen raised Ellington Credit from a “sell” rating to a “hold” rating in a research note on Saturday, April 4th. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $5.75.

Ellington Credit Price Performance

The firm’s 50-day moving average price is $4.64 and its 200 day moving average price is $4.87. The firm has a market capitalization of $164.79 million, a price-to-earnings ratio of -4.22 and a beta of 1.27.

Ellington Credit (NYSE:EARN) last issued its quarterly earnings data on Wednesday, May 20th. 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 company had revenue of $9.87 million during the quarter, compared to analysts’ expectations of $10.57 million.

Ellington Credit Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Friday, July 31st. Stockholders of record on Tuesday, June 30th will be given a $0.08 dividend. This represents a c) annualized dividend and a dividend yield of 21.9%. The ex-dividend date is Tuesday, June 30th. Ellington Credit’s dividend payout ratio is currently -92.31%.

Institutional Trading of Ellington Credit

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. McIlrath & Eck LLC raised its stake in Ellington Credit by 122.4% in the 1st quarter. McIlrath & Eck LLC now owns 10,969 shares of the real estate investment trust’s stock valued at $49,000 after purchasing an additional 6,038 shares during the last quarter. Waverly Advisors LLC grew its holdings in shares of Ellington Credit by 85.8% during the first quarter. Waverly Advisors LLC now owns 167,250 shares of the real estate investment trust’s stock worth $741,000 after buying an additional 77,250 shares in the last quarter. World Investment Advisors acquired a new stake in Ellington Credit during the fourth quarter worth approximately $115,000. Virtu Financial LLC purchased a new stake in Ellington Credit in the 4th quarter worth approximately $57,000. Finally, Quadrature Capital Ltd purchased a new position in shares of Ellington Credit during the 4th quarter worth $75,000. Hedge funds and other institutional investors own 20.40% of the company’s stock.

Ellington Credit Company Profile

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.