Ellington Credit (NYSE:EARN) Stock Price Passes Below 200 Day Moving Average – Time to Sell?

Ellington Credit Company (NYSE:EARN)’s stock price crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $5.54 and traded as low as $5.23. Ellington Credit shares last traded at $5.3050, with a volume of 187,686 shares trading hands.

Analyst Ratings Changes

Several brokerages recently issued reports on EARN. Wall Street Zen raised shares of Ellington Credit from a “sell” rating to a “hold” rating in a research note on Tuesday, November 11th. UBS Group set a $6.00 price objective on shares of Ellington Credit in a report on Tuesday. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, Ellington Credit has a consensus rating of “Moderate Buy” and a consensus target price of $6.25.

Ellington Credit Price Performance

The business’s fifty day moving average price is $5.25 and its 200-day moving average price is $5.54. The stock has a market capitalization of $199.26 million, a price-to-earnings ratio of 66.32 and a beta of 1.30.

Ellington Credit (NYSE:EARN) last posted its earnings results on Wednesday, November 19th. The real estate investment trust reported $0.23 earnings per share for the quarter, topping analysts’ consensus estimates of $0.20 by $0.03. The company had revenue of $11.88 million for the quarter, compared to analyst estimates of $11.41 million. Ellington Credit had a net margin of 12.41% and a return on equity of 16.47%. Equities research analysts predict that Ellington Credit Company will post 1.17 earnings per share for the current fiscal year.

Ellington Credit Dividend Announcement

The business 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. This represents a c) dividend on an annualized basis and a dividend yield of 18.1%. The ex-dividend date is Wednesday, December 31st. Ellington Credit’s dividend payout ratio (DPR) is currently 1,200.00%.

Institutional Investors Weigh In On Ellington Credit

Institutional investors and hedge funds have recently bought and sold shares of the stock. Millennium Management LLC boosted its holdings in Ellington Credit by 485.8% during the 1st quarter. Millennium Management LLC now owns 932,326 shares of the real estate investment trust’s stock worth $5,044,000 after acquiring an additional 773,169 shares during the last quarter. Delphi Financial Group Inc. boosted its holdings in Ellington Credit by 230.8% during the second quarter. Delphi Financial Group Inc. now owns 608,700 shares of the real estate investment trust’s stock worth $3,500,000 after purchasing an additional 424,700 shares during the last quarter. Jane Street Group LLC grew its position in Ellington Credit by 415.4% in the 1st quarter. Jane Street Group LLC now owns 379,906 shares of the real estate investment trust’s stock worth $2,055,000 after purchasing an additional 306,192 shares in the last quarter. OMERS ADMINISTRATION Corp increased its stake in Ellington Credit by 103.8% in the 1st quarter. OMERS ADMINISTRATION Corp now owns 186,300 shares of the real estate investment trust’s stock valued at $1,008,000 after buying an additional 94,900 shares during the last quarter. Finally, Clear Harbor Asset Management LLC lifted its position in shares of Ellington Credit by 21.6% during the 2nd quarter. Clear Harbor Asset Management LLC now owns 350,500 shares of the real estate investment trust’s stock worth $2,015,000 after buying an additional 62,200 shares in the last quarter. 20.40% of the stock is owned by hedge funds and other institutional investors.

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.