Michael Diana, an analyst from Maxim Group, reiterated the Buy rating on Ellington Financial. The associated price target remains the same with $15.00.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Michael Diana has given his Buy rating due to a combination of factors that highlight Ellington Financial’s strong financial position and future prospects. One of the key reasons is the company’s ability to maintain a stable book value per share, despite the dividend exceeding earnings per share. This stability is supported by core earnings, which significantly cover the dividend, providing a yield of 11.3%. Management’s confidence in continuing to over-cover the dividend further strengthens the investment case.
Another important factor is the improvement in Ellington Financial’s capital structure, marked by a shift towards non-recourse financing and unsecured borrowings. This change reduces reliance on short-term repurchase agreements, thus lowering risk and enhancing earnings consistency. Additionally, the company’s securitization strategy has been beneficial, increasing non-recourse financing and creating high-yielding interests. With a price target of $15, reflecting a potential stock price appreciation and a best-in-class risk management track record, Diana sees Ellington Financial as an attractive investment opportunity.
Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Horizon Technology, and Nicolet Bankshares. According to TipRanks, Diana has an average return of -0.6% and a 49.40% success rate on recommended stocks.
In another report released yesterday, TR | OpenAI – 4o also upgraded the stock to a Buy with a $15.00 price target.