Ellington Financial Inc. [NYSE: EFC] traded at a low on 10/13/21, posting a -3.92 loss after which it closed the day’ session at $18.14. The company report on October 13, 2021 that Ellington Financial Inc. Prices Common Stock Offering.
Ellington Financial Inc. (NYSE:EFC) (“Ellington Financial” or the “Company”) announced that it has priced an underwritten public offering of 5,000,000 shares of its common stock for total expected gross proceeds of $91.3 million, before underwriting fees and estimated offering expenses. The Company also granted the underwriters an option for 30 days to purchase up to an additional 750,000 shares of common stock. The offering is subject to customary closing conditions and is expected to close on October 15, 2021. Morgan Stanley & Co. LLC, BofA Securities, J.P. Morgan, UBS Securities LLC and Keefe, Bruyette & Woods, A Stifel Company are acting as joint book-running managers for the offering. BTIG, LLC and Piper Sandler & Co. are acting as co-managers for the offering.
The Company expects to use the net proceeds of the offering to acquire its targeted assets. The Company may also use the net proceeds for working capital and general corporate purposes. The shares of common stock will be issued under the Company’s existing shelf registration statement on Form S-3, which was declared effective by the Securities and Exchange Commission on April 9, 2021. The offering is being made only by means of a prospectus supplement and accompanying base prospectus, which will be filed with the Securities and Exchange Commission. Copies of the final prospectus supplement and accompanying base prospectus related to the offering may be obtained from Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014; or BofA Securities, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte, NC 28255-0001, Attn: Prospectus Department or by email at firstname.lastname@example.org; or J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by telephone at 1-866-803-9204, or by email at email@example.com; or UBS Securities LLC, Attention: Prospectus Department, 1285 Avenue of the Americas, New York, New York 10019, or by telephone at (888) 827-7275; or Keefe, Bruyette & Woods, A Stifel Company at 787 Seventh Avenue, Fourth Floor, New York, NY 10019, by e-mail at USCapitalMarkets@kbw.com, by fax at 212-581-1592, or by telephone at 1-800-966-1559.
The results of the trading session contributed to over 4023900 shares changing hands. Over the past one week, the price volatility of Ellington Financial Inc. stands at 1.14% while the volatility over the past one month is 1.42%.
The market cap for EFC stock reached $904.46 million, with 44.46 million shares outstanding. Compared to the average trading volume of 561.93K shares, EFC reached a trading volume of 4023900 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Ellington Financial Inc. [EFC]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for EFC shares is $19.38 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on EFC stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
UBS have made an estimate for Ellington Financial Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on June 08, 2021. While these analysts kept the previous recommendation, UBS raised their target price to Buy. The new note on the price target was released on January 15, 2021, representing the official price target for Ellington Financial Inc. stock. Previously, the target price had yet another raise to $16.50, while Keefe Bruyette analysts kept a Outperform rating on EFC stock.
The Average True Range (ATR) for Ellington Financial Inc. is set at 0.30, with the Price to Sales ratio for EFC stock in the period of the last 12 months amounting to 5.38. The Price to Book ratio for the last quarter was 0.99, with the Price to Cash per share for the same quarter was set at 2.70. Price to Free Cash Flow for EFC in the course of the last twelve months was 22.50.
How has EFC stock performed recently?
Ellington Financial Inc. [EFC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.63. With this latest performance, EFC shares dropped by -1.68% in over the last four-week period, additionally plugging by 2.25% over the last 6 months – not to mention a rise of 40.84% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for EFC stock in for the last two-week period is set at 39.89, with the RSI for the last a single of trading hit 34.19, and the three-weeks RSI is set at 43.24 for Ellington Financial Inc. [EFC]. The present Moving Average for the last 50 days of trading for this stock 18.46, while it was recorded at 18.63 for the last single week of trading, and 17.57 for the last 200 days.
Ellington Financial Inc. [EFC]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Ellington Financial Inc. [EFC] shares currently have an operating margin of +50.34 and a Gross Margin at +80.73. Ellington Financial Inc.’s Net Margin is presently recorded at +18.71.
Return on Total Capital for EFC is now 1.81, given the latest momentum, and Return on Invested Capital for the company is 1.69. Return on Equity for this stock inclined to 2.92, with Return on Assets sitting at 0.65. When it comes to the capital structure of this company, Ellington Financial Inc. [EFC] has a Total Debt to Total Equity ratio set at 269.82. Additionally, EFC Total Debt to Total Capital is recorded at 72.96, with Total Debt to Total Assets ending up at 69.96. Long-Term Debt to Equity for the company is recorded at 79.42, with the Long-Term Debt to Total Capital now at 18.78.
Reflecting on the efficiency of the workforce at the company, Ellington Financial Inc. [EFC] managed to generate an average of $166,720 per employee. Receivables Turnover for the company is 0.85 with a Total Asset Turnover recorded at a value of 0.03.
Earnings analysis for Ellington Financial Inc. [EFC]
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for EFC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Ellington Financial Inc. go to -5.23%.
Insider trade positions for Ellington Financial Inc. [EFC]
There are presently around $497 million, or 59.50% of EFC stock, in the hands of institutional investors. The top three institutional holders of EFC stocks are: BLACKROCK INC. with ownership of 8,452,666, which is approximately 90.606% of the company’s market cap and around 6.18% of the total institutional ownership; VANGUARD GROUP INC, holding 2,687,233 shares of the stock with an approximate value of $48.75 million in EFC stocks shares; and JPMORGAN CHASE & CO, currently with $29.0 million in EFC stock with ownership of nearly 179.562% of the company’s market capitalization.
Positions in Ellington Financial Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 78 institutional holders increased their position in Ellington Financial Inc. [NYSE:EFC] by around 10,053,784 shares. Additionally, 47 investors decreased positions by around 9,051,829 shares, while 10 investors held positions by with 8,290,507 shares. The mentioned changes placed institutional holdings at 27,396,120 shares, according to the latest SEC report filing. EFC stock had 33 new institutional investments in for a total of 1,895,179 shares, while 16 institutional investors sold positions of 2,834,886 shares during the same period.