Ellington Credit (EARN) Stock Overview
A closed-end management investment company, focuses on generating current yields and risk-adjusted total returns by investing primarily in collateralized loan obligations. More details
| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
EARN Community Fair Values
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Analyst Price Targets
Ellington Credit Company Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$4.49 |
| 52 Week High | US$6.08 |
| 52 Week Low | US$4.27 |
| Beta | 1.26 |
| 1 Month Change | -6.85% |
| 3 Month Change | 2.51% |
| 1 Year Change | -20.81% |
| 3 Year Change | -37.47% |
| 5 Year Change | -63.99% |
| Change since IPO | -76.96% |
Recent News & Updates
Recent updates
ELLA: An 8.50% Notes IPO From Ellington Credit
Summary Ellington Credit Company (EARN) launched ELLA, an 8.50% baby bond maturing in 2031, currently priced near par with an 8.86% YTM. EARN’s NAV per share has declined 25% over the past year, yet the common trades at a premium, signaling potential overvaluation versus peers. Dividend coverage is currently adequate, but NII below distributions indicates a dividend cut is likely. I remain cautious on ELLA, given sector headwinds, NAV downtrend, insufficient dividend coverage, and unjustified premium in EARN’s common shares. Read the full article on Seeking Alpha
Closed-End Fund Transition Unlocks 28% Capital For Future CLO Investments
Consensus revenue growth forecasts for Ellington Credit have risen sharply, more than offsetting a decline in net profit margin, prompting analysts to raise their fair value estimate from $4.92 to $6.12. Valuation Changes Summary of Valuation Changes for Ellington Credit The Consensus Analyst Price Target has significantly risen from $4.92 to $6.12.Ellington Credit Company (NYSE:EARN) Not Lagging Market On Growth Or Pricing
Ellington Credit Company's ( NYSE:EARN ) price-to-earnings (or "P/E") ratio of 23.7x might make it look like a sell...Ellington Credit Is In Transition, And I'm Betting It Pays Off
Summary Ellington Credit Company has shifted from a mortgage REIT to a closed-end fund focusing on high-yield CLOs, aiming for substantial gains. Despite potential high rewards, EARN's transition brings significant risks, with recent earnings volatility and a hefty debt load posing challenges. EARN's valuation appears attractive, trading at a discount with a low P/E ratio, suggesting potential upside if management successfully navigates the CLO market. Near-term headwinds include dividend uncertainty and market volatility, but long-term investors might find significant upside if EARN's strategy pays off. Read the full article on Seeking AlphaEllington Credit: High Yield Is Not A Red Flag
Summary Ellington Credit is transitioning from a mortgage REIT to a closed-end fund focusing on CLOs to achieve higher risk-adjusted returns. The company’s 15% dividend yield is well-covered by distributable earnings, making it an attractive option for passive income investors. Ellington Credit is selling at a discount to book value, offering a buying opportunity as the portfolio transformation progresses. Despite the high risks associated with CLOs, Ellington Credit’s consistent dividend coverage and solid margin of safety justify a 'Buy' rating. Read the full article on Seeking AlphaEllington Credit: Still Waiting For Approval To Transition To A CEF (Rating Downgrade)
Summary Ellington Credit Company is attempting to transition from an REIT to a CEF, facing challenges in obtaining shareholder approval despite strong support. The company issued “mirror preferred” shares to amplify voting power and plans to hold another special shareholder meeting in early 2025. The transition aims to avoid double taxation on CLO investments and improve net interest margins, but delays could impact 2025 tax liabilities. EARN's Q3 2024 results show progress in rotating to CLOs, supporting a 14% yield, but I rate it a Hold pending shareholder approval. Read the full article on Seeking Alpha
CLO Strategy Shift Promises Transformative Growth And Earnings Boost
Strategic transformation into a CLO-focused fund aims to boost risk-adjusted returns, while active management seeks to improve net margins.Ellington Credit: Interest Rate Cuts Could Help The REIT
Summary The recent Federal Reserve interest rate cut benefits REITs, including Ellington Credit, which has struggled with high rates but now shows potential for improved performance. EARN stands out for its strong dividend payments and attractive price-to-distributable earnings per share, making it a solid choice for income investors. Trading at a price/book ratio close to 1, Ellington Credit's assets are expected to increase in value with declining interest rates, enhancing its investment appeal. With a secure 8¢ monthly dividend yielding 13.69%, Ellington Credit is considered a buy, offering strong returns and potential for asset value growth. Read the full article on Seeking AlphaEllington Credit: 14% Yield, Major Strategic Change, 4% BV Discount
Summary Ellington Credit Co. rebranded in April 2024, shifting focus from Mortgage-Backed Securities to Collateralized Debt Obligations. The company plans to maintain a $0.08 per share per month dividend, with a 5% discount to book value. Ellington Credit's transition to CLO investments may lead to less earnings volatility and a higher quality of earnings, making it a 'Buy' for passive income investors. Read the full article on Seeking AlphaEARN: Transforming From A 14% Yielding REIT To A CLO CEF
Summary Ellington Residential Mortgage REIT has announced its decision to transform from a REIT into a closed-end fund that trades in corporate collateralized loan obligations. The transformation is seen as a strategic move to take advantage of the growing CLO market and the potential benefits of CLO investments. EARN's transformation follows the trend of other fund managers finding ways to create new CEFs or transform existing ones to capitalize on the opportunities in the CLO market. Read the full article on Seeking AlphaEllington Residential's 14% Yield Could Be Sustainable In 2024
Summary The central bank plans to shoot for three rate cuts in 2024, which could benefit mortgage real estate investment trusts like Ellington Residential. Ellington Residential's dividend pay-out metrics improved in the fourth quarter, making a dividend cut less likely. The trust's 7% discount to net asset value makes it an appealing investment option. Read the full article on Seeking AlphaShareholder Returns
| EARN | US Capital Markets | US Market | |
|---|---|---|---|
| 7D | -4.9% | 4.2% | 2.3% |
| 1Y | -20.8% | 13.7% | 25.5% |
Return vs Industry: EARN underperformed the US Capital Markets industry which returned 12.4% over the past year.
Return vs Market: EARN underperformed the US Market which returned 24.8% over the past year.
Price Volatility
| EARN volatility | |
|---|---|
| EARN Average Weekly Movement | 3.4% |
| Capital Markets Industry Average Movement | 3.5% |
| Market Average Movement | 7.2% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: EARN has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: EARN's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2012 | n/a | Larry Penn | www.ellingtoncredit.com |
Ellington Credit Company, a closed-end management investment company, focuses on generating current yields and risk-adjusted total returns by investing primarily in collateralized loan obligations. It invests in mezzanine debt and equity tranches. The company was formerly known as Ellington Residential Mortgage REIT and changed its name to Ellington Credit Company in April 2024.
Ellington Credit Company Fundamentals Summary
| EARN fundamental statistics | |
|---|---|
| Market cap | US$169.88m |
| Earnings (TTM) | -US$38.85m |
| Revenue (TTM) | US$43.73m |
Is EARN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| EARN income statement (TTM) | |
|---|---|
| Revenue | US$43.73m |
| Cost of Revenue | US$0 |
| Gross Profit | US$43.73m |
| Other Expenses | US$82.58m |
| Earnings | -US$38.85m |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
n/a
| Earnings per share (EPS) | -1.03 |
| Gross Margin | 100.00% |
| Net Profit Margin | -88.84% |
| Debt/Equity Ratio | 145.3% |
How did EARN perform over the long term?
See historical performance and comparisonDividends
Does EARN pay a reliable dividends?
See EARN dividend history and benchmarks| Ellington Credit dividend dates | |
|---|---|
| Ex Dividend Date | May 29 2026 |
| Dividend Pay Date | Jun 30 2026 |
| Days until Ex dividend | 20 days |
| Days until Dividend pay date | 12 days |
Does EARN pay a reliable dividends?
See EARN dividend history and benchmarksCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/06/16 19:02 |
| End of Day Share Price | 2026/06/16 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2026/03/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
| |
| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
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Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Ellington Credit Company is covered by 5 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Trevor Cranston | Citizens JMP Securities, LLC |
| Stephen Laws | Deutsche Bank |
| Jason Weaver | JonesTrading Institutional Services, LLC |