UBS has recently initiated Ellington Financial Inc (EFC) stock to Neutral rating, as announced on December 6, 2023, according to Finviz. Earlier, on October 19, 2023, B. Riley Securities had initiated the stock to Buy, setting a price target of $15. Keefe Bruyette also raised Outperform rating with a price target of $13.75. Additionally, Credit Suisse reduced Neutral rating on January 9, 2023, with a target price of $14. Maxim Group analysts, in their report published on October 20, 2022, also reiterated Buy rating and set a price target of $17.50 for Ellington Financial Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Ellington Financial Inc (EFC) Stock Trading Recap
On Tuesday, Ellington Financial Inc (EFC) stock saw a decline, ending the day at $12.58 which represents a decrease of $-0.31 or -2.40% from the prior close of $12.89. The stock opened at $12.92 and touched a low of $12.53 during the day, reaching a high of $12.94. The volume of shares traded was 1.18 million exceeding the average volume of 0.97 million.
EFC Stock Performance and Moving Averages
In recent trading, Ellington Financial Inc (EFC) stock price has shown some volatility, fluctuating -4.04% over the last five trades and -4.33% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 10.45%, and it has gained 3.54% in the previous three months. Currently, EFC is trading at -4.08%, -3.10%, and 2.43% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, EFC, a Real Estate sector stock, is trading -6.54% below its 52-week high but remains 15.62% above its 52-week low. The Average True Range (ATR) (14 days) of 0.18 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Ellington Financial Inc’s Profitability and Valuation Ratios
Ellington Financial Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 89.47% and a profit margin of 24.46%, with a gross margin of 10.45%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Ellington Financial Inc’s market capitalization stands at $1.09 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 10.53, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 7.74. Additionally, the Price-to-Sales Ratio is 2.72, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 0.89, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 2.57% of Ellington Financial Inc (EFC)’s shares, while financial institutions hold 57.04%.
Notable insider trades include Vranos Michael W, Co-Chief Investment Officer at Ellington Financial Inc (EFC), who sold 8300 shares on Jun 17 ’24, at $12.15 each, totaling $0.10 million. On Jun 14 ’24, Vranos Michael W, Co-Chief Investment Officer, sold 8300 shares for $12.11 each, amounting to $0.10 million. Additionally, on Dec 14 ’23, Mumford Lisa sold 21180 shares at $13.06 each, generating $0.28 million.
