Ellington Residential Mortgage REITNYSE: EARN

Ellington Credit (EARN) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.17 per share a year ago.

Here is how Ellington Credit (EARN) and Credicorp (BAP) have performed compared to their sector so far this year.

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.

Ellington Credit (EARN) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).

OLD GREENWICH, Conn.--(BUSINESS WIRE)--Ellington Credit Company (NYSE: EARN) (the "Company") today announced that its Board of Trustees has declared a monthly common dividend of $0.08 per share, payable on July 25, 2024 to shareholders of record as of June 28, 2024. Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looki.

After reaching an important support level, Ellington Credit (EARN) could be a good stock pick from a technical perspective. EARN surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

There is increasing optimism about Ellington Credit (EARN) earnings potential, leading to its upgrade to a Zacks Rank #2 (Buy) and potentially driving the stock price higher.

Ellington Residential Mortgage REIT has revealed its plan to convert from a REIT to a closed-end fund specializing in corporate collateralized loan obligations. This shift is viewed as a strategic decision to capitalize on the expanding CLO market and the advantages of investing in CLOs. EARN's transformation aligns with the trend of fund managers exploring opportunities in the CLO market by creating new CEFs or transforming existing ones.

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.