Ellington Credit Company (EARN) Stock

Ellington Credit Company (EARN) is a Real Estate stock trading at $4.42 (as of 2026-08-21), with a market capitalization of $166.20M. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Ellington Residential Mortgage REIT, a real estate investment trust, specializes in acquiring, investing in, and managing residential mortgage-and real estate-related assets. It acquires and manages residential mortgage-backed securities (RMBS), including agency pools and agency collateralized mortgage obligations (CMOs); and non-agency RMBS comprising non-agency CMOs, such as investment grade and non-investment grade. The company has elected to be taxed as a real estate investment trust. As a result, it would not be subject to corporate income tax on that portion of its net income that is distributed to shareholders. Ellington Residential Mortgage REIT was incorporated in 2012 and is based in Old Greenwich, Connecticut.

Understand Ellington Credit Company: how it makes money

Ellington Credit Company invests in and manages residential mortgage-related assets, including RMBS (agency pools and agency CMOs) and non-agency RMBS, with profits tied to returns from these mortgage investments (it has elected REIT taxation).

The core profit engine is the combination of active investments bought and sold, and the size of its credit hedging relative to its net asset value, since the reported operating metrics track both trading activity and hedge positioning.

Business quality (Solid): Clear high-level business focus on residential mortgage-related investments, but no segment revenue breakdown and limited disclosure context in the provided facts.

Bull case

  • Defined hedging emphasis: The company reports a credit hedge portfolio that is large relative to net asset value (reported as 90%).
  • Active portfolio management metrics are tracked: Disclosures track both investments purchased and investments sold, alongside yield-related measures (Weighted Average Cost Yield).

Bear case

  • Potential sensitivity to hedge and exposure changes: With net mortgage exposure tracked (6.6 ratio) and hedges tracked as a high share of net asset value (90%), changes in credit hedge effectiveness or exposures could impact results.
  • Trading and execution risk: The company reports a high number of distinct trades executed (44), which can increase sensitivity to market conditions around purchase and sale timing.
Valuation — source: SEC EDGAR (first-party)
Price$4.42
Market Cap$166.20M
Price / Book0.73
Price / Sales3.44
DCF Value (model)$0.72
DCF Upside vs Price-83.7%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$15.46M
Net Margin-50.9%
Revenue Growth (YoY)49.0%
EPS Growth (YoY)-215.0%
Valuation vs Sector & Industry
Sector P/E (Real Estate)27.2
Industry P/E (Trading)35.3
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVANGUARD GROUP INC ($7.58M)
Institutional Holders Tracked10
Company
SectorReal Estate
IndustryTrading
CEOLaurence Eric Penn
Employees150
CountryUS
IPO Date2013-05-01

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EARN earnings history · EARN institutional & insider holders · EARN KPIs & operating metrics · EARN financials · EARN investor presentations & press releases · EARN SEC filings · EARN peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.