|Bid||18.44 x 900|
|Ask||18.45 x 1100|
|Day's Range||18.28 - 18.51|
|52 Week Range||16.30 - 19.00|
|Beta (5Y Monthly)||0.35|
|PE Ratio (TTM)||13.07|
|Earnings Date||Feb 11, 2020|
|Forward Dividend & Yield||1.80 (9.89%)|
|Ex-Dividend Date||Jan 29, 2020|
|1y Target Est||19.58|
Ellington Financial Inc. (NYSE:EFC) (the "Company") today announced that it will release financial results for the quarter ended December 31, 2019 after market close on Wednesday, February 12, 2020. The Company will host a conference call to discuss its financial results at 11:00 a.m. Eastern Time on Thursday, February 13, 2020. To participate in the event by telephone, please dial (877) 241-1233 at least 10 minutes prior to the start time and reference the conference passcode 6022108. International callers should dial (810) 740-4657 and reference the same passcode. The conference call also will be webcast live and can be accessed via the "For Our Shareholders" section of the Company's website at www.ellingtonfinancial.com. To listen to the live webcast, please visit www.ellingtonfinancial.com at least 15 minutes prior to the start of the call to register, download, and install necessary audio software.
Do you love dividends? Of course you do -- and rightly so!Scholars who study the stock market's historical performance estimate that over time, the payment (and reinvestment, and compounding) of dividends have contributed anywhere from 30% to 90% of the S&P 500's total returns. Simply put, if you're not investing in dividend stocks, you're doing it wrong.And if you do love dividends, there's one sector in particular you should be focusing on: Real estate investment trusts, or REITs, pay out some of the most generous yields available to investors today, in many cases, several times more yield than the 2% average on the S&P 500.Knowing this, and having just been presented with a new stock report from investment bank B. Riley FBR, we've taken a good close look at the REITs highlighted therein -- and run them through our TipRanks Stock Screener tool to ensure that other analysts agree with B. Riley. Three of them make the grade, and here they are for your perusal.Ellington Financial (EFC)Starting at the top is Old Greenwich, Connecticut-based Ellington Financial. Ellington focuses its business on the acquisition of residential mortgage-backed securities (RMBS), which confer upon their holders the right to collect mortgage payments on residential mortgage loans, as well as the actual residential mortgage loans themselves, commercial MBS, and of course, commercial mortgage loans, too.Ellington Financial has a good track record of putting "capital to work at wider spreads while protecting book value, which has resulted in strong economic returns and dividend stability," says B. Riley's analyst Tim Hayes. In his opinion, this REIT is "one of the best positioned companies ... to take advantage of ebbs and flows in the MBS markets/potential volatility in 2020," and in particular, to take advantage of the Fed's recent uptick in buying mortgage-backed securities to inject money into the economy.2020, says Hayes, "could be a very strong year for EFC, especially given the potential for significant volatility surrounding the November election, GSE reform, and Fed policy." Indeed, Hayes posits earnings ahead of consensus this year ($1.87 per share), rising to $1.92 per share in 2021, and the analyst believes this warrants a higher price target of $19.50 on this buy-rated stock (5.5% above current pricing). Overall, Hayes says Ellington is one of this top two picks in this sector. (To watch Hayes' track record, click here)Other analysts are even more optimistic. Of the three investment banks that have rated Ellington over the past month, all three agree the stock is a "buy" -- and on average, they think it's worth $20 a share. 7% ahead of current pricing, that should combine with Ellington's 9.2% dividend yield to product returns in excess of 16%. (See Ellington stock analysis at TipRanks)New Residential Investment (NRZ)Hayes's second REIT of the day is New Residential Investment. A specialist in residential mortgage loans, this NYC-based mortgage REIT is both the biggest stock on today's list by a large margin (market cap -- $6.9 billion), and also the most generous dividend payer, with a shockingly large yield of 12.3%.It's also, alongside Ellington Financial, one of Hayes's top two picks in the sector, with a target price of $18.50 per share and a profit potential of 12.5% (before added the dividend. After the dividend, you could be looking at close to a 25% profit).Why is Hayes optimistic about this one? In the current low interest rate environment, says the analyst, with a strong economy and strong demand for housing, there's likely to be significant demand for new and refinanced loans, creating new business for New Residential's loan originating business, "New Rez." Rising expenses and weaker "asset yields," says the analyst, could weigh on earnings this year ($2.10 per share is his guess), but business could perk back up in 2021, and Hayes is forecasting profits per share of $2.14, justifying the analyst's buy rating.And Wall Street is broadly in agreement. Over the last couple of months, two other analysts have rated New Residential Investment Corp a buy, and only one a "hold." Their consensus, by the way, that the stock is worth $18.20, isn't that far off from Hayes's own. (See New Residential stock analysis at TipRanks)Jernigan Capital (JCAP)Last but not least, Jernigan Capital is a Memphis, Tennessee-based small-cap REIT that focuses on providing debt and equity capital to self-storage facility businesses in over 100 U.S. markets. In fact, according to the company, it is the only REIT in America that focuses its business entirely upon the self-storage sector. Which is, incidentally, a great place to do business, given Americans' affinity for collecting "stuff."In B. Riley's report, analyst Tim Hayes predicts that 2020 will be "a breakout year for JCAP" featuring multiple acquisitions driving "stronger NOI growth and NAV creation." For those not familiar with the terms, that refers to net operating income -- or profits -- and net asset value, which refers to the value of the assets the company controls.Hayes is predicting a $26 target price for Jernigan stock by the end of this year, which is 38.5% above where the stock trades today.Though, Hayes notes that his predictions of $1.22 per share in adjusted earnings per share in 2020, and $0.88 per share in 2021, are both below consensus estimates. Conceivably, if Jernigan earns more than Hayes predicts, the stock could be worth even more. Indeed, with a 7.1% dividend yield, it's almost certain to deliver more in terms of total return.Jernigan has slipped under most analysts’ radar; the stock’s Moderate Buy consensus is based on just two recent ratings. With shares trading at $18.90, the $23 average price target suggests room for a 22% upside. (See Jernigan stock analysis at TipRanks)
Ellington Financial Declares Monthly Dividend and Announces Estimated Book Value Per Common Share
Let’s talk about dividends. For investors interested in quick returns or steady income, these profit-sharing payments to stockholders have always been an inducement to enter equity markets. In today’s financial environment, with bond yields depressed and the Federal Reserve’s key interest rate set at just 1.75%, dividends are a natural place to look if you want to grow your money.And why not? Even at the low end, dividends offer at least the same return as bonds – but with higher potential for increase. The average dividend yield among companies listed in the S&P 500 is just about 2%, meaning a significant number offer far better returns. We’ve opened up the Stock Screener tool from TipRanks, a company that tracks and measures the performance of analysts, to find a few of these high-yielding stocks.Setting the screener filters to show us small to large-cap companies with a very high dividend yields exceeding 5% gave us a manageable list of stocks. We’ve picked three to focus on.Energy Transfer LP (ET)When you picture the oil and gas industry, the giant wellheads are probably the first thing that come to mind. But those are only a small part of the larger reality. Energy Transfer is midstream company – one of the many entities that works at moving the oil and gas products from the well to the users. Energy Transfer has operations in 38 states, with most of its assets in the Texas-Oklahoma-Louisiana and Midwest-Appalachia-Delaware regions.Anything connected to the oil industry tends to drip money, and ET is no exception. The company saw $54 billion in total sales last year. The Q3 numbers show that it is on track for a similar performance this year. The most recently reported quarter showed $13.5 billion in revenue, with a 32-cent EPS based on net profits of $832 million. While revenues were short of the forecasts, EPS met the estimates.ET’s earnings number is important as it shows that the company can easily meet its dividend obligation. Energy Transfer pays out $1.22 per year, or 30.5 cents quarterly, for a yield of 9.42%. This is almost 10 times the S&P average, and a strong return for investors. Combined with a low share price, the dividend makes ET an attractive proposition.RBC Capital’s 5-star analyst Elvira Scotto agrees that ET is a stock to buy. She wrote of the company last month, “ET recently reported strong 3Q19 results, increased its 2019 EBITDA guidance, lowered its 2019 growth capex and expects flat growth capex in 2020, which we view positively. We expect leverage to decline in the coming years as projects ramp.” Her price target, $20, suggests a 53% upside. (To watch Scotto’s track record, click here)With 5 recent Buy ratings, ET shares get a unanimous Strong Buy from the analyst consensus. The stock sells for just $13.07, a low cost of entry for shares with a 36% return potential based on an average target price of $17.75. (See Energy Transfer’s stock analysis at TipRanks) Ellington Financial, Inc. (EFC)Ellington is a financial services company focused on mortgage-backed securities, mortgage loans in the residential and commercial segments, collateralized loan assets, and consumer loans. In short, it is similar to a real estate investment trust, but gets its hands into a wider array of assets and loan-backed asset packages.That Ellington’s financial asset investments are profitable is clear from November’s Q3 report. The company showed 53 cents EPS, based on $17.3 million in net income. A stock offering during the quarter brought in over $69 million, showing that financial market watchers are willing to invest in this company.One attractive feature of the stock is the dividend, which offers a yield of 9.22%. At current share prices, this comes out to an annualized payout of $1.68 per share, or 42 cents quarterly.4-star analyst Matthew Howlett, of Nomura, is bullish on EFC’s prospects. He writes, “The good news is, with the stock now above book value, future capital raising is poised to be accretive to book value and should enhance EFC’s economic return,” and of the company’s short-term prospect, he adds, “Our investment thesis remains EFC is still on track to raise its dividend in 2020 as its core EPS ramps.” Howlett gives EFC a Buy rating with a $20 price target, suggesting a 9.4% upside. (To watch Howlett’s track record, click here)EFC is another stock with unanimous support behind its Strong Buy consensus rating, this one based on 3 recent Buys. The $19.50 average price target indicates a 6.6% upside from the share price of $18.29. (See Ellington’s stock analysis at TipRanks) See Also: 3 “Perfect 10” Tech Stocks Primed for Gains in 2020National CineMedia, Inc. (NCMI)Hollywood and the theater companies aren’t the only ones making money from the movies. Those ads at the beginning of the show? Someone has to produce and distribute them as well as sell access to the advertisers. That’s NCMI’s niche. Apparently, captive audiences are a good one, because the company’s stock is up a modest 12% this year.NCMI has had a hard time meeting quarterly expectations, however. The company showed 12 cents EPS in the last report, for Q3, against a 13-cent forecast. Revenues were also below the estimates, at $110.5 million, but slightly above the year-ago number.For dividend-minded investors, those quarterly numbers bring a warning. The payout ratio is 159%, meaning the current payment is substantially higher than the earnings that support it. It is not sustainable – unless the company’s shares increase in value, but more on that below. For now, the dividend is 17 cents per quarter, annualized at 68 cents and showing a yield of 9.5%. That payment has been stable for two years.Writing for Barrington, analyst James Goss sees a benefit for investors in the disappointing Q3 results, upgrading the rating from Market Perform to Outperform. He points out, “The post-earnings selloff in the shares has created an opportunity with the stock now yielding 9.5%. National CineMedia's stable business model creates a situation in which the company can pay out roughly 80% of its free cash flow in dividends and distributions.” In line with Goss’ Buy stance, and his view that the stock price is at a discount, he gives a price target of $9.50, suggesting a 31% upside. (To watch Goss’ track record, click here)NCMI has three recent reviews, including 2 Buys and 1 Hold, giving the stock a Moderate Buy consensus rating. Shares sell for just $7.27, but the average price target of $8.67 suggests an upside potential of 19%. If the stock realizes that potential, the high dividend yield will be easily sustainable. (See National CineMedia’s stock-price forecast and analyst ratings)
Is Ellington Financial LLC (NYSE:EFC) a good bet right now? We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage […]
The Company has granted the underwriters an option for 30 days to purchase up to an additional 630,000 shares of common stock. The offering is subject to customary closing conditions and is expected to close on November 21, 2019. UBS Securities LLC, Credit Suisse Securities (USA) LLC, BofA Securities, and Keefe Bruyette & Woods, Inc. are acting as joint book-running managers for the offering.
Ellington Financial Inc. (EFC) (the "Company") announced today that it closed a $267.3 million securitization backed by a pool of non-qualified residential mortgage (“non-QM”) loans. The Company originally acquired the non-QM loans from LendSure Mortgage Corp., a mortgage originator in which the Company holds a strategic equity investment. “We are pleased with the execution of our second securitization of non-QM loans of 2019, and with the steady growth of LendSure,” said JR Herlihy, Chief Financial Officer of the Company.
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Ellington Financial Inc. (EFC) (the "Company") today announced that its Board of Directors has declared a monthly dividend of $0.14 per common share, payable on December 26, 2019 to stockholders of record as of November 29, 2019. The Company also announced its estimated book value per common share of $18.67 as of October 31, 2019. This estimate includes the effect of the previously announced monthly dividend of $0.14 per common share, payable on November 25, 2019 to holders of record on October 31, 2019, with an ex-dividend date of October 30, 2019.
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It seems that the masses and most of the financial media hate hedge funds and what they do, but why is this hatred of hedge funds so prominent? At the end of the day, these asset management firms do not gamble the hard-earned money of the people who are on the edge of poverty. Truth […]