Its Stock Has Paid Off Big Time For Ellington Residential Mortgage REIT

Ellington Residential Mortgage REIT (NYSE: EARN) stock jumped 0.50% on Friday to $6.00 against a previous-day closing price of $5.97. With 75622.0 shares changed hands, the volume of the stock remained lighter than its average volume of 0.13 million shares. During the session, the REIT – Mortgage company that operates in wider Real Estate sector, reached to the highest price of $6.03 whereas the lowest price it dropped to was $5.92. The 52-week range on EARN shows that it touched its highest point at $8.15 and its lowest point at $5.09 during that stretch. It currently has a 1-year price target of $6.50. With its current market cap of 97.98 million, EARN has annualized dividend of $0.96 while the current yield stands at 16.00%. Beta for the stock currently stands at 1.85.

Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of EARN was up-trending over the past week, with a rise of 6.95%, but this was up by 10.91% over a month. Three-month performance dropped to -8.26% while six-month performance fell -16.32%. The stock lost -15.61% in the past year, while it has lost -12.54% so far this year. A look at the trailing 12-month EPS for EARN yields 0.39 with Next year EPS estimates of 0.98. For the next quarter, that number is 0.25. This implies an EPS growth rate of -10.85% for this year and 3.70% for next year.

Float and Shares Shorts:

At present, 16.33 million EARN shares are outstanding with a float of 16.04 million shares on hand for trading. On Oct 30, 2023, short shares totaled 0.21 million, which was 1.32% higher than short shares on Sep 28, 2023. In addition to Mr. Laurence Eric Penn as the firm’s CEO, President & Trustee, Mr. Christopher M. Smernoff serves as its Chief Financial Officer.

Institutional Ownership:

Other institutions hold 5.98% of EARN, in contrast to 23.40% held by mutual funds. Shares owned by individuals account for 15.03%. As the largest shareholder in EARN with 3.69% of the stake, The Vanguard Group, Inc. holds 585,233 shares worth 585,233. A second-largest stockholder of EARN, Renaissance Technologies LLC, holds 453,200 shares, controlling over 2.86% of the firm’s shares. Two Sigma Investments LP is the third largest shareholder in EARN, holding 243,384 shares or 1.53% stake. With a 2.11% stake in EARN, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 334,462 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 1.46% of EARN stock, is the second-largest Mutual Fund holder. It holds 231,695 shares valued at 1.22 million. Fidelity Extended Market Index Fu holds 0.50% of the stake in EARN, owning 79,206 shares worth 0.42 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EARN since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With EARN analysts setting a high price target of $6.50 and a low target of $6.50, the average target price over the next 12 months is $6.50. Based on these targets, EARN could surge 8.33% to reach the target high and rise by 8.33% to reach the target low. Reaching the average price target will result in a growth of 8.33% from current levels.

Summary of Insider Activity:

Insiders traded EARN stock several times over the past three months with 4 Buys and 0 Sells. In these transactions, 32,920 shares were bought while 0 shares were sold. The number of buy transactions has increased to 6 while that of sell transactions has risen to 2 over the past year. The total number of shares bought during that period was 45,031 while 3,108 shares were sold.