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Upturn AI SWOT - About
EARN 
Ellington Residential Mortgage (EARN)
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Upturn Advisory Summary
09/16/2025: 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 -1.51% | 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 09/16/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 212.96M USD | Price to earnings Ratio 20.25 | 1Y Target Price 6.12 |
Price to earnings Ratio 20.25 | 1Y Target Price 6.12 | ||
Volume (30-day avg) 4 | Beta 1.32 | 52 Weeks Range 4.04 - 6.20 | Updated Date 09/16/2025 |
52 Weeks Range 4.04 - 6.20 | Updated Date 09/16/2025 | ||
Dividends yield (FY) 17.02% | 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 20.25 | Forward PE 6.13 | Enterprise Value 713604608 | Price to Sales(TTM) 5.93 |
Enterprise Value 713604608 | Price to Sales(TTM) 5.93 | ||
Enterprise Value to Revenue 13.34 | Enterprise Value to EBITDA - | Shares Outstanding 37559200 | Shares Floating 37044634 |
Shares Outstanding 37559200 | Shares Floating 37044634 | ||
Percent Insiders 1.37 | Percent Institutions 13.13 |
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 strategy centered around opportunistic investments in various segments of the mortgage market. Since its IPO, it has adapted its portfolio strategy based on evolving market conditions.
Core Business Areas
- Residential Mortgage-Backed Securities (RMBS): EARN's primary business involves investing in and managing RMBS, including agency and non-agency securities. This includes analyzing market trends and identifying undervalued assets within the mortgage market.
Leadership and Structure
Laurence Penn is the Chief Executive Officer and Chairman. The company operates as a REIT, with a board of directors overseeing its operations and strategic direction.
Top Products and Market Share
Key Offerings
- Agency RMBS: Securities backed by government agencies like Fannie Mae and Freddie Mac. EARN allocates capital to these based on yield and risk assessment. Difficult to provide precise market share for each security type held. Competitors include other REITs focused on agency RMBS like AGNC Investment Corp. (AGNC) and Annaly Capital Management (NLY).
- Credit Risk Transfer Securities (CRTs): Securities tied to the credit risk of residential mortgages held by Fannie Mae and Freddie Mac. Competitors include other REITs and investment firms focused on credit risk transfer securities. Difficult to provide precise market share for each security type held.
- Non-Agency RMBS: Securities not backed by government agencies, often with higher yields but also higher risk. EARN invests in these based on detailed credit analysis. Difficult to provide precise market share for each security type held. Competitors include other REITs focused on non-agency RMBS like MFA Financial, Inc. (MFA).
Market Dynamics
Industry Overview
The residential mortgage REIT industry is sensitive to interest rate fluctuations, credit spreads, and prepayment speeds. Macroeconomic conditions and government policies significantly impact the performance of RMBS.
Positioning
Ellington Residential Mortgage positions itself as an opportunistic investor in the RMBS market, seeking to generate attractive risk-adjusted returns through active portfolio management and hedging strategies. They tend to seek undervalued assets and employ sophisticated strategies to manage risk.
Total Addressable Market (TAM)
The total addressable market for RMBS is vast, measured in trillions of dollars. EARN's positioning within this TAM is relatively small but specialized, focusing on specific segments and employing sophisticated strategies to capture value.
Upturn SWOT Analysis
Strengths
- Experienced management team
- Opportunistic investment strategy
- Active portfolio management
- Hedging strategies to manage interest rate risk
Weaknesses
- Sensitivity to interest rate fluctuations
- Reliance on leverage
- Complexity of RMBS market
- External management structure may result in conflicts of interest
Opportunities
- Market dislocations creating undervalued RMBS
- Expansion into new RMBS segments
- Increased demand for rental housing driving mortgage demand
- Improvements in mortgage credit quality
Threats
- Rising interest rates reducing RMBS values
- Increased mortgage prepayments
- Economic downturn impacting housing market
- Increased regulatory scrutiny
Competitors and Market Share
Key Competitors
- AGNC
- NLY
- MFA
Competitive Landscape
Ellington Residential Mortgage competes with other REITs and investment firms for opportunities in the RMBS market. Its competitive advantages include its experienced management team, opportunistic investment strategy, and active portfolio management. Disadvantages may include its smaller size compared to some larger competitors.
Growth Trajectory and Initiatives
Historical Growth: EARN's growth has been influenced by its ability to identify and capitalize on opportunities in the RMBS market. Changes in interest rates and market volatility have also played a role.
Future Projections: Future growth depends on market conditions, investment opportunities, and the company's ability to manage risk effectively. Analyst estimates are available from financial data providers.
Recent Initiatives: Recent initiatives may include adjustments to the investment portfolio, hedging strategies, and capital allocation decisions.
Summary
Ellington Residential Mortgage is a specialized REIT focused on residential mortgage-backed securities. Its performance is heavily influenced by interest rate movements and credit market conditions. The company has a history of opportunistic investing, but its smaller size compared to major competitors presents challenges. Careful risk management and portfolio diversification are crucial for maintaining profitability. The external management structure could potentially lead to conflicts of interest.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Investor Presentations
- Analyst Reports
- Financial News Outlets
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual risk tolerance and thorough research. Market share data is based on available public information and may not be precise.
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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