Ellington Credit (EARN) Stock Price, News & Analysis

Company Overview

Ellington Credit Company, a real estate investment trust, acquires, invests in, and manages residential mortgage-and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), including agency pools and agency collateralized mortgage obligations (CMOs); and non-agency RMBS, such as non-agency CMOs, such as investment grade and non-investment grade. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. The company was formerly known as Ellington Residential Mortgage REIT and changed its name to Ellington Credit Company in April 2024. Ellington Credit Company was incorporated in 2012 and is based in Old Greenwich, Connecticut.

Key Stats

• Today's Range: $6.43 to $6.58
• 50-Day Range: $6.33 to $7.04
• 52-Week Range: $5.54 to $7.26
• Volume: 419,376 shs
• Average Volume: 485,789 shs
• Market Capitalization: $189.22 million
• P/E Ratio: 5.87
• Dividend Yield: 14.61%
• Price Target: $6.00
• Consensus Rating: Hold

Ellington Credit Stock Analysis - MarketRank™

Ellington Credit scored higher than 28% of companies evaluated by MarketBeat, and ranked 844th out of 952 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: 1.0 / 5
• Analyst Rating: Hold

Consensus Rating

Ellington Credit has received a consensus rating of Hold. The company's average rating score is 2.00, and is based on no buy ratings, 2 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Ellington Credit has received no research coverage in the past 90 days.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: -5.17%

Earnings Growth

Earnings for Ellington Credit are expected to decrease by -5.17% in the coming year, from $1.16 to $1.10 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Ellington Credit is 5.86, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 126.67.

Price to Earnings Ratio vs. Sector

The P/E ratio of Ellington Credit is 5.86, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 46.06.

Price to Book Value per Share Ratio

Ellington Credit has a P/B Ratio of 0.79. 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

1.86% 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 1.4, 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 22.71%, 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 14.86%, 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 85.71%. 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 87.27% 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

1.86% 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 1.4, 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 22.71%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.8 / 5
• News Sentiment: 1.09

News Sentiment

Ellington Credit has a news sentiment score of 1.09. 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 is a higher news sentiment than the 0.69 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 9 news articles for Ellington Credit this week, compared to 2 articles on an average week.

Search Interest

Only 16 people have searched for EARN on MarketBeat in the last 30 days. This is a decrease of -11% compared to the previous 30 days.

MarketBeat Follows

Only 2 people have added Ellington Credit to their MarketBeat watchlist in the last 30 days. This is a decrease of -67% compared to the previous 30 days.

Company Ownership

• Score: 0.0 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Ellington Credit insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 2.00% 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 $6.13 at the beginning of the year. Since then, EARN stock has increased by 7.0% and is now trading at $6.56.
View the best growth stocks for 2024 here.

How were Ellington Credit's earnings last quarter?

Ellington Credit (NYSE:EARN) posted its quarterly earnings data on Tuesday, November, 12th. The real estate investment trust reported $0.28 EPS for the quarter, topping the consensus estimate of $0.27 by $0.01. The real estate investment trust earned $4.75 million during the quarter, compared to the consensus estimate of $7.55 million. Ellington Credit had a trailing twelve-month return on equity of 15.81% and a net margin of 226.01%.

Who are Ellington Credit's major shareholders?

Ellington Credit's top institutional shareholders include Geode Capital Management LLC (1.07%), Clear Harbor Asset Management LLC (0.99%), Thrivent Financial for Lutherans (0.31%) and International Assets Investment Management LLC (0.33%).
View institutional ownership trends.

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.
Compare Top Brokerages Here.

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 Value Fund (CLM).

Company Calendar

• Ex-Dividend for 11/25 Dividend: 10/31/2024
• Last Earnings: 11/12/2024
• Today: 11/19/2024
• Dividend Payable: 11/25/2024
• Ex-Dividend for 12/26 Dividend: 11/29/2024
• Dividend Payable: 12/26/2024
• Fiscal Year End: 12/31/2024
• Next Earnings (Estimated): 3/05/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: Real estate investment trusts
• Sub-Industry: Trading
• Current Symbol: NYSE:EARN
• CUSIP: N/A
• CIK: 1560672
• Web: www.earnreit.com
• Phone: (203) 698-1200
• Fax: N/A
• Employees: 170
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $6.00
• High Stock Price Target: $6.00
• Low Stock Price Target: $6.00
• Potential Upside/Downside: -8.5%
• Consensus Rating: Hold
• Rating Score (0-4): 2.00
• Research Coverage: 2 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $1.12
• Trailing P/E Ratio: 5.86
• Forward P/E Ratio: 5.66
• P/E Growth: N/A
• Net Income: $4.56 million
• Net Margins: 226.01%
• Pretax Margin: 127.08%
• Return on Equity: 17.20%
• Return on Assets: 2.57%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 0.36
• Quick Ratio: 0.36

Sales & Book Value

• Annual Sales: $42.55 million
• Price / Sales: 3.91
• Cash Flow: $0.85 per share
• Price / Cash Flow: 7.73
• Book Value: $8.34 per share
• Price / Book: 0.79

Miscellaneous

• Outstanding Shares: 25,330,000
• Free Float: 24,820,000
• Market Cap: $166.16 million
• Optionable: Optionable
• Beta: 1.87