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Ellington Residential Mortgage Completes Delaware Fund Conversion

Story Highlights
  • Ellington Credit Company reported a net loss of $7.9 million for the period ending March 31, 2025.
  • The company completed its conversion to a closed-end fund focused on CLOs on April 1, 2025.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Ellington Residential Mortgage Completes Delaware Fund Conversion

Elevate Your Investing Strategy:

Ellington Residential Mortgage ( (EARN) ) has shared an update.

Ellington Credit Company, a financial entity, reported a net loss of $7.9 million for the three-month period ending March 31, 2025, despite achieving adjusted distributable earnings of $9.0 million. The company completed its conversion to a Delaware-domiciled closed-end fund focused on corporate collateralized loan obligations (CLOs) on April 1, 2025, which is expected to enhance its market positioning. This strategic shift allowed the company to efficiently liquidate its long Agency RMBS and short TBA positions amid volatile market conditions, with a focus on expanding its CLO portfolio and maintaining dividend coverage.

The most recent analyst rating on (EARN) stock is a Buy with a $6.50 price target. To see the full list of analyst forecasts on Ellington Residential Mortgage stock, see the EARN Stock Forecast page.

Spark’s Take on EARN Stock

According to Spark, TipRanks’ AI Analyst, EARN is a Neutral.

Ellington Residential Mortgage’s overall score reflects its mixed financial performance, with inconsistent revenue and cash flow but a stable balance sheet. Technical analysis indicates a currently weak stock trend, though valuation offers a high dividend yield. The absence of debt and strategic moves like the closed-end fund conversion are positive, but market volatility remains a risk.

To see Spark’s full report on EARN stock, click here.

More about Ellington Residential Mortgage

Average Trading Volume: 786,183

Technical Sentiment Signal: Sell

Current Market Cap: $211.1M

Learn more about EARN stock on TipRanks’ Stock Analysis page.

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