Ellington Residential Mortgage Stock Buy Hold or Sell Recommendation

EARN Stock  USD 7.03  0.03  0.43%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Ellington Residential Mortgage is 'Hold'. The recommendation algorithm takes into account all of Ellington Residential's available fundamental, technical, and predictive indicators you will find on this site.
  
Check out Ellington Residential Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Ellington and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Ellington Residential Mortgage. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.

Execute Ellington Residential Buy or Sell Advice

The Ellington recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Ellington Residential Mortgage. Macroaxis does not own or have any residual interests in Ellington Residential Mortgage or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Ellington Residential's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Ellington ResidentialBuy Ellington Residential
Hold

Market Performance

GoodDetails

Volatility

Not too volatileDetails

Hype Condition

StaleDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

About AverageDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon Ellington Residential Mortgage has a Risk Adjusted Performance of 0.0548, Jensen Alpha of 0.0896, Total Risk Alpha of 0.0403, Sortino Ratio of 0.0485 and Treynor Ratio of 1.48
We provide trade advice to complement the prevailing expert consensus on Ellington Residential. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Ellington Residential is not overpriced, please confirm all Ellington Residential fundamentals, including its debt to equity, total asset, and the relationship between the ebitda and earnings per share . Given that Ellington Residential has a price to earning of 2.40 X, we urge you to verify Ellington Residential Mortgage market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Ellington Residential Trading Alerts and Improvement Suggestions

Ellington Residential Mortgage currently holds 729.54 M in liabilities with Debt to Equity (D/E) ratio of 8.04, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Ellington Residential has a current ratio of 0.17, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Ellington Residential's use of debt, we should always consider it together with its cash and equity.
Ellington Residential Mortgage currently holds about 83 M in cash with (10.02 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.35.
On 25th of June 2024 Ellington Residential paid $ 0.08 per share dividend to its current shareholders
Latest headline from zacks.com: Are Finance Stocks Lagging Ellington Credit Company This Year

Ellington Residential Returns Distribution Density

The distribution of Ellington Residential's historical returns is an attempt to chart the uncertainty of Ellington Residential's future price movements. The chart of the probability distribution of Ellington Residential daily returns describes the distribution of returns around its average expected value. We use Ellington Residential Mortgage price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Ellington Residential returns is essential to provide solid investment advice for Ellington Residential.
Mean Return
0.10
Value At Risk
-2.01
Potential Upside
1.89
Standard Deviation
1.22
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Ellington Residential historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Ellington Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument, such as Ellington Residential, soars without any apparent reason. This usually happens because many institutional investors are aggressively trading Ellington Residential Mortgage back and forth among themselves. Companies that invest excess capital in these types of assets may also be included in this term and can influence corporate governance by exercising voting rights in their investments.
Shares
Advisor Group Holdings, Inc.2024-03-31
19.4 K
Rsm Us Wealth Management Llc2024-03-31
14.6 K
Cambridge Invest Research Advisors, Inc.2024-03-31
13.5 K
Private Advisor Group, Llc2024-03-31
13.2 K
Alpine Investment Management Llc2024-03-31
12.5 K
Inspire Advisors, Llc2024-03-31
12.4 K
Simplex Trading, Llc2024-03-31
5.2 K
Baldwin Brothers Inc2024-03-31
K
Nisa Investment Advisors, L.l.c.2024-03-31
3.8 K
Ameriprise Financial Inc2024-03-31
300.7 K
Two Sigma Investments Llc2024-03-31
291.9 K
Note, although Ellington Residential's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Ellington Residential Cash Flow Accounts

201920202021202220232024 (projected)
Change In Cash16.8M22.8M10.9M(34.2M)3.7M6.2M
Free Cash Flow17.5M24.4M27.9M22.4M(10.0M)(9.5M)
Other Non Cash Items(4.1M)5.7M33.7M45.3M(11.9M)(11.3M)
Net Income22.3M20.1M(6.3M)(30.2M)4.6M4.8M
End Period Cash Flow35.4M58.2M69.0M34.8M38.5M36.8M
Investments214.3M317.6M99.9M(53.1M)120.8M126.9M
Change Receivables591K902K(390K)1.2M1.4M1.4M
Net Borrowings(185.3M)(281.0M)49.6M(222.4M)(200.1M)(190.1M)
Depreciation14.9M14.3M7.5M2.3M2.6M2.5M
Dividends Paid15.5M13.8M17.3M13.9M14.1M17.2M
Change To Netincome(57.7M)5.9M23.9M94.6M108.7M114.2M

Ellington Residential Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Ellington Residential or Mortgage Real Estate Investment Trusts (REITs) sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Ellington Residential's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Ellington stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.09
β
Beta against Dow Jones0.06
σ
Overall volatility
1.10
Ir
Information ratio 0.05

Ellington Residential Volatility Alert

Ellington Residential Mortgage has relatively low volatility with skewness of -0.31 and kurtosis of 1.96. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ellington Residential's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ellington Residential's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Ellington Residential Fundamentals Vs Peers

Comparing Ellington Residential's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Ellington Residential's direct or indirect competition across all of the common fundamentals between Ellington Residential and the related equities. This way, we can detect undervalued stocks with similar characteristics as Ellington Residential or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Ellington Residential's fundamental indicators could also be used in its relative valuation, which is a method of valuing Ellington Residential by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Ellington Residential to competition
FundamentalsEllington ResidentialPeer Average
Return On Equity0.048-0.31
Return On Asset0.0059-0.14
Profit Margin0.25 %(1.27) %
Operating Margin0.90 %(5.51) %
Current Valuation725.09 M16.62 B
Shares Outstanding20.13 M571.82 M
Shares Owned By Insiders1.98 %10.09 %
Shares Owned By Institutions17.86 %39.21 %
Number Of Shares Shorted423.15 K4.71 M
Price To Earning2.40 X28.72 X
Price To Book0.96 X9.51 X
Price To Sales3.85 X11.42 X
Revenue13.01 M9.43 B
Gross Profit84.58 M27.38 B
EBITDA49.81 M3.9 B
Net Income4.56 M570.98 M
Cash And Equivalents83 M2.7 B
Cash Per Share6.35 X5.01 X
Total Debt729.54 M5.32 B
Debt To Equity8.04 %48.70 %
Current Ratio0.17 X2.16 X
Book Value Per Share7.21 X1.93 K
Cash Flow From Operations(10.02 M)971.22 M
Short Ratio1.60 X4.00 X
Earnings Per Share0.34 X3.12 X
Price To Earnings To Growth(1.79) X4.89 X
Target Price7.25
Beta1.92-0.15
Market Capitalization140.94 M19.03 B
Total Asset945.69 M29.47 B
Retained Earnings(138.65 M)9.33 B
Working Capital(1.19 B)1.48 B
Current Asset131.7 M9.34 B
Note: Acquisition by Ronald Simon of 537 shares of Ellington Residential at 11.28 subject to Rule 16b-3 [view details]

Ellington Residential Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Ellington . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Ellington Residential Buy or Sell Advice

When is the right time to buy or sell Ellington Residential Mortgage? Buying financial instruments such as Ellington Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Ellington Residential in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Penny
Penny Theme
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You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Penny Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Ellington Stock

When determining whether Ellington Residential offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ellington Residential's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ellington Residential Mortgage Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ellington Residential Mortgage Stock:
Check out Ellington Residential Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Is Mortgage Real Estate Investment Trusts (REITs) space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ellington Residential. If investors know Ellington will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ellington Residential listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.185
Dividend Share
0.96
Earnings Share
0.34
Revenue Per Share
1.532
Quarterly Revenue Growth
(0.83)
The market value of Ellington Residential is measured differently than its book value, which is the value of Ellington that is recorded on the company's balance sheet. Investors also form their own opinion of Ellington Residential's value that differs from its market value or its book value, called intrinsic value, which is Ellington Residential's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ellington Residential's market value can be influenced by many factors that don't directly affect Ellington Residential's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ellington Residential's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ellington Residential is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ellington Residential's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.