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Gregory Morris Borenstein, a Portfolio Manager at Ellington Credit Co (NYSE:EARN), recently acquired 8,000 common shares of beneficial interest in the company. The transaction, which took place on April 9, was executed at an average price of $4.7343 per share, amounting to a total purchase value of $37,874. According to InvestingPro data, this purchase comes as the stock trades near its 52-week low of $4.33, with shares down over 25% year-to-date. Following this acquisition, Borenstein's direct ownership in the company increased to 18,000 shares. Ellington Credit Co, a real estate investment trust, is incorporated in Maryland and headquartered in Old Greenwich, Connecticut. The company currently offers an impressive 20.17% dividend yield, and InvestingPro analysis indicates the stock is currently trading below its Fair Value, with analysts setting a price target of $6.50 per share. For deeper insights into EARN's valuation and 11 additional key investment tips, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Ellington Residential Mortgage reported its fourth-quarter 2024 earnings, with adjusted distributable earnings per share (EPS) of $0.27, missing analysts' expectations of $0.30. The company's revenue also fell short of forecasts, coming in at $6.14 million compared to the projected $6.67 million. Meanwhile, Ellington Credit Company announced a monthly common dividend of $0.08 per share, which is scheduled to be paid on May 27, 2025. The company has also introduced a Dividend Reinvestment Plan (DRP) for shareholders. Ellington Residential Mortgage is undergoing a strategic shift towards collateralized loan obligations (CLOs), with plans to convert to a CLO-focused closed-end fund by April 1, 2025. This transition is part of their strategy to capitalize on market inefficiencies. Additionally, the company highlighted its growing CLO portfolio, which increased by 18% to $171 million in the fourth quarter. Despite these changes, Ellington Residential Mortgage's economic return for the quarter was reported at -1.2%.
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