Ellington stock rating upgraded to Buy by Jones Trading on dividend outlook

Published 13/08/2025, 12:54
Ellington stock rating upgraded to Buy by Jones Trading on dividend outlook

Investing.com - Jones Trading upgraded Ellington (NYSE:EFC) from Hold to Buy and established a price target of $14.25 on Wednesday. According to InvestingPro data, the stock currently trades at $13.36, with analyst targets ranging from $12.50 to $16.00, suggesting potential upside. The company maintains a "GOOD" Financial Health score.

The upgrade follows Ellington’s second-quarter results, with Jones Trading citing several factors including the likelihood of an upcoming dividend increase to $0.42-0.43 per quarter and the company’s demonstrated hedging capabilities that protected book value during market volatility. InvestingPro data shows the company has maintained dividend payments for 16 consecutive years, currently offering an attractive 11.7% yield. Get access to more exclusive dividend insights and 5 additional ProTips with an InvestingPro subscription.

Jones Trading also highlighted Ellington’s attractive return on equity expectations for new capital deployment and its active securitization platform, which offers attractive financing and low risk to equity capital.

For the quarter, Ellington reported adjusted distributable earnings per share of $0.46, exceeding Jones Trading’s estimate of $0.41 and the consensus estimate of $0.40.

The company’s GAAP earnings per share of $0.44 surpassed Jones Trading’s $0.34 estimate, attributed to higher net portfolio gains, including growth in book value per share, and better gains from HMBS originations.

In other recent news, Ellington Financial LLC reported impressive second-quarter results for 2025, surpassing both earnings and revenue forecasts. The company achieved an earnings per share of $0.47, exceeding the anticipated $0.40 by 17.5%. Revenue reached $92.54 million, which was higher than the projected $83.21 million, marking an 11.21% increase. These results indicate strong financial performance and have garnered positive attention from investors. The favorable earnings and revenue figures reflect the company’s robust operations and strategic positioning. While the stock price movement is not the focus here, the positive financial outcomes suggest a strong foundation for the company’s future activities. These developments highlight Ellington Financial’s ability to exceed market expectations and maintain investor confidence.

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