Ellington Financial Inc. to Issue Monthly Dividend of $0.13 (NYSE:EFC)

Ellington Financial Inc. (NYSE:EFC) declared a monthly dividend on Monday, June 10th, Wall Street Journal reports. Shareholders of record on Friday, June 28th will be given a dividend of 0.13 per share by the financial services provider on Thursday, July 25th. This represents a $1.56 annualized dividend and a yield of 12.72%. The ex-dividend date is Friday, June 28th.

Ellington Financial has raised its dividend by an average of 12.7% annually over the last three years. Ellington Financial has a payout ratio of 94.0% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Equities analysts expect Ellington Financial to earn $1.70 per share next year, which means the company should continue to be able to cover its $1.56 annual dividend with an expected future payout ratio of 91.8%.

Ellington Financial Stock Up 0.7 %

NYSE EFC opened at $12.26 on Thursday. The company has a debt-to-equity ratio of 10.99, a quick ratio of 46.79 and a current ratio of 46.79. The company has a market capitalization of $1.04 billion, a P/E ratio of 19.03 and a beta of 1.95. Ellington Financial has a one year low of $10.88 and a one year high of $14.21. The stock has a 50 day moving average price of $11.91 and a 200-day moving average price of $12.02.

Ellington Financial (NYSE:EFC) last posted its earnings results on Tuesday, May 7th. The financial services provider reported $0.28 EPS for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.07). The firm had revenue of $31.06 million for the quarter, compared to the consensus estimate of $26.68 million. Ellington Financial had a net margin of 66.65% and a return on equity of 10.51%. As a group, equities analysts predict that Ellington Financial will post 1.48 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on EFC shares. Keefe, Bruyette & Woods lowered their target price on Ellington Financial from $14.00 to $13.25 and set an “outperform” rating for the company in a research report on Wednesday, February 28th. Jonestrading initiated coverage on Ellington Financial in a report on Friday, April 19th. They set a “hold” rating on the stock. JMP Securities restated a “market outperform” rating and set a $14.50 price target on shares of Ellington Financial in a report on Thursday, April 18th. StockNews.com upgraded Ellington Financial from a “sell” rating to a “hold” rating in a report on Thursday, May 2nd. Finally, BTIG Research decreased their price target on Ellington Financial from $15.50 to $13.50 and set a “buy” rating on the stock in a report on Thursday, April 18th. Three equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $13.95.

Insiders Place Their Bets

In other news, CIO Michael W. Vranos sold 8,300 shares of the firm’s stock in a transaction on Monday, June 17th. The stock was sold at an average price of $12.15, for a total transaction of $100,845.00. Following the transaction, the executive now owns 160,874 shares in the company, valued at $1,954,619.10. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 4.40% of the company’s stock.

About Ellington Financial

Ellington Financial Inc, through its subsidiary, Ellington Financial Operating Partnership LLC, acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets in the United States. The company acquires and manages residential mortgage-backed securities (RMBS) backed by prime jumbo, Alt-A, manufactured housing, and subprime mortgage; RMBS for which the principal and interest payments are guaranteed by the U.S.