The stock of Ellington Residential Mortgage REIT (NYSE: EARN) has decreased by -2.08 when compared to last closing price of 6.73.Despite this, the company has seen a loss of -0.30% in its stock price over the last five trading days. Seeking Alpha reported 2024-04-18 that 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.
Is It Worth Investing in Ellington Residential Mortgage REIT (NYSE: EARN) Right Now?
The price-to-earnings ratio for Ellington Residential Mortgage REIT (NYSE: EARN) is 26.10x, which is above its average ratio. Moreover, the 36-month beta value for EARN is 1.87. Analysts have varying opinions on the stock, with 0 analysts rating it as a “buy,” 0 as “overweight,” 3 as “hold,” and 0 as “sell.”
The public float for EARN is 19.53M and currently, short sellers hold a 1.60% of that float. On April 19, 2024, EARN’s average trading volume was 263.27K shares.
EARN’s Market Performance
EARN’s stock has seen a -0.30% decrease for the week, with a -3.23% drop in the past month and a 7.86% gain in the past quarter. The volatility ratio for the week is 2.46%, and the volatility levels for the past 30 days are at 2.68% for Ellington Residential Mortgage REIT. The simple moving average for the past 20 days is -2.72% for EARN’s stock, with a 4.33% simple moving average for the past 200 days.
Analysts’ Opinion of EARN
Many brokerage firms have already submitted their reports for EARN stocks, with UBS repeating the rating for EARN by listing it as a “Neutral.” The predicted price for EARN in the upcoming period, according to UBS is $6 based on the research report published on December 06, 2023 of the previous year 2023.
EARN Trading at 3.82% from the 50-Day Moving Average
After a stumble in the market that brought EARN to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -13.74% of loss for the given period.
Volatility was left at 2.68%, however, over the last 30 days, the volatility rate increased by 2.46%, as shares sank -2.37% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +18.92% upper at present.
During the last 5 trading sessions, EARN fell by -0.15%, which changed the moving average for the period of 200-days by -6.52% in comparison to the 20-day moving average, which settled at $6.77. In addition, Ellington Residential Mortgage REIT saw 7.50% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for EARN
Current profitability levels for the company are sitting at:
- -7.23 for the present operating margin
- 1.73 for the gross margin
The net margin for Ellington Residential Mortgage REIT stands at 0.83. The total capital return value is set at 0.07. Equity return is now at value 3.67, with 0.46 for asset returns.
Based on Ellington Residential Mortgage REIT (EARN), the company’s capital structure generated 0.84 points at debt to capital in total, while cash flow to debt ratio is standing at -0.01. The debt to equity ratio resting at 5.35. The interest coverage ratio of the stock is 0.35.
Currently, EBITDA for the company is 49.81 million with net debt to EBITDA at 30.81. When we switch over and look at the enterprise to sales, we see a ratio of -370.95. The receivables turnover for the company is -0.04for trailing twelve months and the total asset turnover is -0.0.
Conclusion
To wrap up, the performance of Ellington Residential Mortgage REIT (EARN) has been mixed in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
