Stocks

Rising Short Interest in Ellington Financial Inc. (NYSE:EFC)

Published February 19, 2025

Ellington Financial Inc. (NYSE:EFC) has recently seen a notable increase in short interest for the month of January. By January 31st, the total short interest reached 5,520,000 shares, which is an impressive rise of 15.2% from the 4,790,000 shares reported on January 15th. With an average trading volume of 892,900 shares, this translates to a days-to-cover ratio of roughly 6.2 days, indicating how long it would take for short sellers to cover their positions.

Ellington Financial Alerts:

Analyst Opinions on Ellington Financial

Various analysts have shared their perspectives on the stock in recent weeks. Notably, B. Riley upgraded Ellington Financial to a "strong-buy" rating on January 7th, while JMP Securities reaffirmed a "market outperform" rating and set a price target of $14.00 per share on January 23rd. Currently, there are two analysts who have assigned a hold rating, three with a buy rating, and one who has issued a strong buy rating. Overall, Ellington Financial has an average rating of "Moderate Buy" and an average price target of $13.58 according to data from MarketBeat.

Latest Analysis on EFC:

Institutional Stake Changes in Ellington Financial

In addition, several institutional investors have adjusted their stakes in Ellington Financial recently. Larson Financial Group LLC dramatically increased its holdings in the company to 2,562 shares, growing its stake by 18,200.0% in the fourth quarter. After acquiring another 2,548 shares, their investment is now valued at approximately $31,000. Similarly, Steward Partners Investment Advisory LLC raised its position by 162.3%, now owning 2,602 shares worth around $32,000. Sterling Capital Management LLC also expanded its stake by 814.9%, owning 2,644 shares valued at $32,000 after purchasing 2,355 shares. Other notable additions include AlphaQuest LLC and McIlrath & Eck LLC, both of which have recently acquired positions in Ellington Financial. Overall, institutional investors own 55.62% of the stock.

Performance Update for Ellington Financial

On the trading front, shares of EFC experienced a slight increase of 0.7% on Monday, reaching $12.98. The trading volume stood at 883,573 shares, slightly above its average of 838,743. Currently, Ellington Financial carries a market capitalization of $1.18 billion, with a price-to-earnings (P/E) ratio of 9.90 and a beta of 1.97. Over the past year, the stock has seen a low of $10.88 and a high of $13.46. Financial metrics reflect a quick ratio and current ratio both at 37.04, while the debt-to-equity ratio stands at 10.87. The company's 50-day and 200-day moving averages are $12.40 and $12.58, respectively.

Upcoming Dividend Announcement from Ellington Financial

The company has also announced a monthly dividend that is scheduled to be paid on March 25th. Shareholders of record by February 28th will receive a dividend of $0.13, translating to a projected annual dividend of $1.56 with a yield of 12.02%. The ex-dividend date for this upcoming dividend is February 28th. Notably, Ellington Financial's dividend payout ratio stands at 119.08%.

About Ellington Financial

Ellington Financial Inc. operates through its subsidiary, Ellington Financial Operating Partnership LLC, specializing in the acquisition and management of various mortgage-related, consumer-related, corporate-related, and other financial assets in the United States. The firm primarily focuses on residential mortgage-backed securities (RMBS) backed by different types of mortgages, including prime jumbo, Alt-A, manufactured housing, and subprime mortgages, as well as RMBS guaranteed by the U.S. government.

Investing Considerations

Before making any investment move, potential investors should review current market analysis and consider various investment options. It is essential to be informed about not only Ellington Financial but also other stocks that analysts recommend.

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