Ellington Credit Company (NYSE:EARN) Sees Large Increase in Short Interest

by · The Cerbat Gem

Ellington Credit Company (NYSE:EARNGet Free Report) saw a large growth in short interest in the month of December. As of December 15th, there was short interest totaling 495,448 shares, a growth of 37.8% from the November 30th total of 359,652 shares. Currently, 1.3% of the company’s shares are short sold. Based on an average daily volume of 306,505 shares, the days-to-cover ratio is presently 1.6 days. Based on an average daily volume of 306,505 shares, the days-to-cover ratio is presently 1.6 days. Currently, 1.3% of the company’s shares are short sold.

Ellington Credit Stock Performance

Shares of Ellington Credit stock traded up $0.02 on Tuesday, hitting $5.32. The company had a trading volume of 370,355 shares, compared to its average volume of 477,278. Ellington Credit has a 1 year low of $4.32 and a 1 year high of $6.86. The stock has a 50 day moving average of $5.26 and a 200-day moving average of $5.53. The stock has a market capitalization of $199.63 million, a price-to-earnings ratio of 66.45 and a beta of 1.30.

Ellington Credit (NYSE:EARNGet Free Report) last announced its quarterly earnings results on Wednesday, November 19th. The real estate investment trust reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.03. The business had revenue of $11.88 million during the quarter, compared to the consensus estimate of $11.41 million. Ellington Credit had a return on equity of 16.47% and a net margin of 12.41%. Equities analysts anticipate that Ellington Credit will post 1.17 earnings per share for the current year.

Ellington Credit Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Friday, January 30th. Stockholders of record on Wednesday, December 31st will be issued a $0.08 dividend. The ex-dividend date is Wednesday, December 31st. This represents a c) annualized dividend and a dividend yield of 18.1%. Ellington Credit’s dividend payout ratio is currently 1,200.00%.

Analyst Ratings Changes

A number of equities research analysts have weighed in on EARN shares. Wall Street Zen upgraded Ellington Credit from a “sell” rating to a “hold” rating in a report on Tuesday, November 11th. UBS Group set a $6.00 price objective on shares of Ellington Credit in a research report on Tuesday, December 23rd. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, Ellington Credit presently has an average rating of “Moderate Buy” and an average price target of $6.25.

Read Our Latest Report on EARN

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bogart Wealth LLC increased its stake in Ellington Credit by 62.5% in the 2nd quarter. Bogart Wealth LLC now owns 5,200 shares of the real estate investment trust’s stock valued at $30,000 after buying an additional 2,000 shares during the last quarter. Quarry LP purchased a new position in shares of Ellington Credit in the 1st quarter worth approximately $33,000. Engineers Gate Manager LP bought a new position in shares of Ellington Credit in the second quarter valued at approximately $83,000. PharVision Advisers LLC purchased a new stake in shares of Ellington Credit during the first quarter valued at approximately $93,000. Finally, Vident Advisory LLC lifted its holdings in Ellington Credit by 27.5% during the first quarter. Vident Advisory LLC now owns 17,383 shares of the real estate investment trust’s stock worth $94,000 after acquiring an additional 3,754 shares during the period. 20.40% of the stock is currently owned by hedge funds and other institutional investors.

Ellington Credit Company Profile

(Get Free Report)

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.

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