Ellington Credit (NYSE:EARN) Stock Crosses Below Two Hundred Day Moving Average – Time to Sell?

Ellington Credit Company (NYSE:EARN)’s share price passed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $4.60 and traded as low as $4.30. Ellington Credit shares last traded at $4.32, with a volume of 355,492 shares.

Analysts Set New Price Targets

Separately, Piper Sandler dropped their price target on Ellington Credit from $5.25 to $5.00 and set an “overweight” rating on the stock in a report on Monday, July 13th. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $5.50.

Ellington Credit Price Performance

The firm has a fifty day simple moving average of $4.40 and a two-hundred day simple moving average of $4.59. The firm has a market capitalization of $164.24 million, a P/E ratio of -4.46 and a beta of 1.28.

Ellington Credit (NYSE:EARN) last issued its quarterly earnings results on Wednesday, August 12th. The real estate investment trust reported $0.15 EPS for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.05). The firm had revenue of $6.08 million during the quarter, compared to analysts’ expectations of $10.57 million.

Ellington Credit Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, August 31st will be given a $0.08 dividend. The ex-dividend date of this dividend is Monday, August 31st. This represents a c) annualized dividend and a dividend yield of 22.0%. Ellington Credit’s payout ratio is -97.96%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of EARN. McIlrath & Eck LLC lifted its position in shares of Ellington Credit by 122.4% during the first quarter. McIlrath & Eck LLC now owns 10,969 shares of the real estate investment trust’s stock worth $49,000 after acquiring an additional 6,038 shares in the last quarter. Virtu Financial LLC purchased a new position in shares of Ellington Credit in the fourth quarter valued at $57,000. Quadrature Capital Ltd bought a new stake in shares of Ellington Credit during the 4th quarter valued at $75,000. Engineers Gate Manager LP purchased a new stake in Ellington Credit during the 2nd quarter worth about $83,000. Finally, World Investment Advisors purchased a new stake in Ellington Credit during the 4th quarter worth about $115,000. 20.40% of the stock is currently owned by hedge funds and other institutional investors.

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.