The stock of Ellington Credit Co (NYSE: EARN) has increased by 1.09 when compared to last closing price of 4.58.Despite this, the company has seen a loss of -2.32% in its stock price over the last five trading days. seekingalpha.com reported 2025-04-10 that Ellington Credit has transitioned from a REIT to a RIC, focusing on CLOs. The fund’s attractive valuation, low management fees, and strong track record make it a compelling investment despite portfolio uncertainty. EARN’s flexibility in allocating across both CLO Equity/Debt and US/EU securities provides a significant advantage in the CLO CEF sector.
Is It Worth Investing in Ellington Credit Co (NYSE: EARN) Right Now?
Ellington Credit Co (NYSE: EARN) has a price-to-earnings ratio of 15.15x that is above its average ratio. Additionally, the 36-month beta value for EARN is 1.37. There are mixed opinions on the stock, with 0 analysts rating it as a “buy,” 1 rating it as “overweight,” 3 rating it as “hold,” and 0 rating it as “sell.”
The public float for EARN is 37.07M and currently, short sellers hold a 3.51% ratio of that float. The average trading volume of EARN on April 11, 2025 was 886.32K shares.
EARN’s Market Performance
EARN stock saw a decrease of -2.32% in the past week, with a monthly decline of -21.53% and a quarterly a decrease of -27.99%. The volatility ratio for the week is 8.50%, and the volatility levels for the last 30 days are 4.20% for Ellington Credit Co (EARN). The simple moving average for the past 20 days is -13.73% for EARN’s stock, with a -29.85% 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 -22.90% 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 -36.23% of loss for the given period.
Volatility was left at 4.20%, however, over the last 30 days, the volatility rate increased by 8.50%, as shares sank -19.50% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -29.44% lower at present.
During the last 5 trading sessions, EARN fell by -1.16%, which changed the moving average for the period of 200-days by -33.73% in comparison to the 20-day moving average, which settled at $5.37. In addition, Ellington Credit Co saw -30.06% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at EARN starting from Borenstein Gregory Morris, who purchase 8,000 shares at the price of $4.73 back on Apr 09 ’25. After this action, Borenstein Gregory Morris now owns 18,000 shares of Ellington Credit Co, valued at $37,874 using the latest closing price.
Stock Fundamentals for EARN
Current profitability levels for the company are sitting at:
- 1.4 for the present operating margin
- 0.91 for the gross margin
The net margin for Ellington Credit Co stands at 0.35. The total capital return value is set at 0.14. Equity return is now at value 3.99, with 0.74 for asset returns.
When we switch over and look at the enterprise to sales, we see a ratio of 8.15. The receivables turnover for the company is 1.78for trailing twelve months and the total asset turnover is 0.02.
Conclusion
In conclusion, Ellington Credit Co (EARN) has seen bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. 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.
