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Upturn AI SWOT - About
Ellington Residential Mortgage (EARN)
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Upturn Advisory Summary
06/27/2025: EARN (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
4 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $6
1 Year Target Price $6
| 0 | Strong Buy |
| 1 | Buy |
| 3 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -1.06% | Avg. Invested days 46 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/27/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 217.09M USD | Price to earnings Ratio 20.64 | 1Y Target Price 6 |
Price to earnings Ratio 20.64 | 1Y Target Price 6 | ||
Volume (30-day avg) 4 | Beta 1.31 | 52 Weeks Range 4.21 - 6.46 | Updated Date 06/30/2025 |
52 Weeks Range 4.21 - 6.46 | Updated Date 06/30/2025 | ||
Dividends yield (FY) 16.61% | Basic EPS (TTM) 0.28 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -14.61% | Operating Margin (TTM) 75.59% |
Management Effectiveness
Return on Assets (TTM) -0.6% | Return on Equity (TTM) -2.82% |
Valuation
Trailing PE 20.64 | Forward PE 4.7 | Enterprise Value 717736128 | Price to Sales(TTM) 6.05 |
Enterprise Value 717736128 | Price to Sales(TTM) 6.05 | ||
Enterprise Value to Revenue 13.67 | Enterprise Value to EBITDA - | Shares Outstanding 37559200 | Shares Floating 37048766 |
Shares Outstanding 37559200 | Shares Floating 37048766 | ||
Percent Insiders 1.36 | Percent Institutions 22.77 |
Analyst Ratings
Rating 2 | Target Price 6 | Buy 1 | Strong Buy - |
Buy 1 | Strong Buy - | ||
Hold 3 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Ellington Residential Mortgage
Company Overview
History and Background
Ellington Residential Mortgage REIT (EARN) was founded in 2013. It is a specialty finance company that focuses on acquiring and managing residential mortgage-backed securities (RMBS). It aims to generate income by investing in and managing a portfolio of RMBS.
Core Business Areas
- Agency RMBS: Investments in RMBS backed by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. These are generally considered lower risk due to the implied government guarantee.
- Non-Agency RMBS: Investments in RMBS not backed by GSEs. These carry higher credit risk but also offer potentially higher returns.
- Other Mortgage-Related Assets: This category can include various other types of mortgage-related assets, contributing to diversification of the portfolio. They may include assets related to the servicing of residential mortgages.
Leadership and Structure
Laurence Penn is the CEO. The company has a typical REIT structure, with a board of directors overseeing management.
Top Products and Market Share
Key Offerings
- Agency RMBS: Represents a significant portion of EARN's portfolio. They earn the spread between the yield on the RMBS and their cost of funds. Competitors include other mortgage REITs such as Annaly Capital Management (NLY) and AGNC Investment Corp (AGNC).
- Non-Agency RMBS: Offers potential for higher returns, but with increased risk. EARN actively manages this risk through portfolio diversification and hedging strategies. Competitors include other mortgage REITs such as Annaly Capital Management (NLY) and AGNC Investment Corp (AGNC).
Market Dynamics
Industry Overview
The mortgage REIT industry is sensitive to interest rate movements, credit spreads, and prepayment speeds. It is influenced by macroeconomic factors such as economic growth, inflation, and monetary policy.
Positioning
Ellington Residential Mortgage positions itself as a specialist in the residential mortgage market. It differentiates itself through active portfolio management and hedging strategies.
Total Addressable Market (TAM)
The total addressable market for residential mortgages and RMBS is vast, measured in trillions of dollars. EARN's positioning is to capture a small percentage of this market by effectively managing and investing in a diversified portfolio of assets.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Active portfolio management
- Hedging strategies to mitigate interest rate risk
Weaknesses
- High sensitivity to interest rate fluctuations
- Reliance on leverage
- External management structure
Opportunities
- Expansion into new mortgage-related asset classes
- Increased market volatility creating attractive investment opportunities
- Growing demand for housing
Threats
- Rising interest rates
- Increased competition from other mortgage REITs
- Economic recession leading to credit losses
Competitors and Market Share
Key Competitors
- NLY
- AGNC
- IVR
- TWO
Competitive Landscape
EARN competes with larger and more established mortgage REITs. Its advantages may include specialized expertise in certain asset classes and active portfolio management.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been impacted by market conditions and the company's ability to effectively manage its portfolio and hedging strategies.
Future Projections: Future growth is dependent on the company's ability to identify attractive investment opportunities, manage interest rate risk, and maintain access to capital.
Recent Initiatives: EARN has focused on optimizing its portfolio and refining its hedging strategies.
Summary
Ellington Residential Mortgage operates in a highly competitive and interest-rate-sensitive market. Their active management and hedging are crucial for navigating volatility. The company must effectively manage its leverage and credit risk while seeking attractive investment opportunities in the residential mortgage sector to maintain profitability and shareholder returns. The REIT is at risk of high interest rate fluctuations. Future growth depends on identifying the best possible oppurtunities.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Analyst reports
- Industry publications
Disclaimers:
The data provided is for informational purposes only and should not be considered investment advice.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Ellington Residential Mortgage
Exchange NYSE | Headquaters Old Greenwich, CT, United States | ||
IPO Launch date 2013-05-01 | CEO, President & Trustee Mr. Laurence Eric Penn | ||
Sector Financial Services | Industry Asset Management | Full time employees - | Website https://www.ellingtoncredit.com |
Full time employees - | Website https://www.ellingtoncredit.com | ||
Ellington Credit Company, a closed-end management investment company, focuses on generating current yields and risk-adjusted total returns by investing primarily in collateralized loan obligations. It invests in mezzanine debt and equity tranches. The company was formerly known as Ellington Residential Mortgage REIT and changed its name to Ellington Credit Company in April 2024. Ellington Credit Company was incorporated in 2012 and is headquartered in Old Greenwich, Connecticut.
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