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Upturn AI SWOT - About
EARN 
Ellington Residential Mortgage (EARN)
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Stock price based on last close (see disclosures)
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Upturn Advisory Summary
08/28/2025: EARN (1-star) is currently NOT-A-BUY. Pass it for now.
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
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $6.12
1 Year Target Price $6.12
| 0 | Strong Buy |
| 1 | Buy |
| 3 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -2.17% | Avg. Invested days 51 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/28/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 220.85M USD | Price to earnings Ratio 21 | 1Y Target Price 6.12 |
Price to earnings Ratio 21 | 1Y Target Price 6.12 | ||
Volume (30-day avg) 4 | Beta 1.3 | 52 Weeks Range 4.04 - 6.20 | Updated Date 08/29/2025 |
52 Weeks Range 4.04 - 6.20 | Updated Date 08/29/2025 | ||
Dividends yield (FY) 16.41% | Basic EPS (TTM) 0.28 |
Earnings Date
Report Date 2025-08-19 | When - | Estimate 0.24 | Actual 0.27 |
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 21 | Forward PE 4.7 | Enterprise Value 721492096 | Price to Sales(TTM) 6.15 |
Enterprise Value 721492096 | Price to Sales(TTM) 6.15 | ||
Enterprise Value to Revenue 13.91 | Enterprise Value to EBITDA - | Shares Outstanding 37559200 | Shares Floating 37048766 |
Shares Outstanding 37559200 | Shares Floating 37048766 | ||
Percent Insiders 1.36 | Percent Institutions 12.94 |
Upturn AI SWOT
Ellington Residential Mortgage
Company Overview
History and Background
Ellington Residential Mortgage REIT (EARN) was founded in 2013. It focuses on acquiring and managing residential mortgage-backed securities (RMBS), with a focus on non-agency RMBS. It aims to generate attractive risk-adjusted returns through its investment strategy.
Core Business Areas
- Residential Mortgage-Backed Securities (RMBS): EARN invests primarily in RMBS, including non-agency, agency, and other mortgage-related assets. It actively manages its portfolio composition and risk exposure.
Leadership and Structure
Laurence Penn is the Chief Executive Officer and Chairman. The company operates as a real estate investment trust (REIT) and is externally managed by Ellington Management Group, LLC.
Top Products and Market Share
Key Offerings
- Non-Agency RMBS: Ellington Residential Mortgage focuses heavily on non-agency RMBS, which are not guaranteed by government-sponsored enterprises like Fannie Mae or Freddie Mac. Market share data is difficult to pinpoint precisely, but EARN is a relatively small player in the overall RMBS market. Competitors include larger REITs and asset managers focusing on fixed income. The market share fluctuates based on the market conditions.
Market Dynamics
Industry Overview
The RMBS market is influenced by factors such as interest rates, housing market trends, and economic conditions. Regulatory changes and investor sentiment also play a significant role.
Positioning
Ellington Residential Mortgage specializes in a niche segment of the RMBS market (non-agency). This allows them to potentially generate higher returns but also exposes them to greater risk compared to broader RMBS investments.
Total Addressable Market (TAM)
The total RMBS market is in the trillions of dollars. Ellington Residential Mortgage, given its market capitalization, occupies a small portion of this TAM, focusing on specific segments like non-agency RMBS to generate higher returns.
Upturn SWOT Analysis
Strengths
- Specialized investment focus (non-agency RMBS)
- Experienced management team
- External management structure can provide efficiency
Weaknesses
- External management fees
- Sensitivity to interest rate changes
- Smaller market capitalization compared to competitors
- Reliance on leverage
Opportunities
- Increased demand for RMBS
- Favorable interest rate environment
- Distressed asset opportunities
- Expansion into other mortgage-related asset classes
Threats
- Rising interest rates
- Economic downturn
- Increased regulation
- Competition from larger REITs
Competitors and Market Share
Key Competitors
- AGNC
- TWO
- IVR
- NRZ
Competitive Landscape
Ellington Residential Mortgage faces competition from larger, more diversified REITs. Its niche focus can be an advantage but also increases risk. Diversified REITs can be better insulated from isolated events.
Growth Trajectory and Initiatives
Historical Growth: Historically, Ellington Residential Mortgage's growth has been tied to its ability to capitalize on opportunities in the RMBS market and has been volatile.
Future Projections: Future growth projections depend on the macroeconomic environment and the company's ability to execute its investment strategy. Analyst estimates vary.
Recent Initiatives: Recent initiatives may include portfolio adjustments, hedging strategies, and capital raising activities.
Summary
Ellington Residential Mortgage REIT (EARN) operates in a specific niche in the residential mortgage-backed securities (RMBS) market, focusing on non-agency RMBS. It has an experienced management team and aims to generate high returns but faces risks tied to interest rate changes and economic conditions. Its smaller market capitalization and reliance on external management also pose challenges. EARN relies on being successful in market segmentation. EARN's dividend yield is attractive, but future success depends on adept navigation of market conditions.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings (10-K, 10-Q)
- Analyst reports
- Market data providers
- Financial news sources
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market conditions and company performance can change rapidly. Consult with a qualified financial advisor before making any investment decisions.
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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