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EFCEllington Financial Inc.Sell6.1·$13.48+0.98%
SellModerate Confidence
Investment thesis

Three of the past four quarters have beaten consensus estimates and revenue has grown 76% year-over-year, making this an industry growth leader. However, the stock has exceeded its near-term resistance take-profit level with negative upside geometry at current prices, and the high dividend yield has been flagged as potentially unsustainable.

Thesis pillars

  • Earnings Beat Track RecordDeteriorating
  • Exceptional Revenue GrowthStable
  • Price Above Resistance TargetStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Ellington Financial Inc. (EFC) Stock Analysis

Range Bound setup

SellVALUE-TRAP 1/5ValueGrowthModerate Confidence

Real Estate · REIT - Mortgage

Sell if holding. Analyst target reached at $13.48 — A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (4.5% away).

Ellington Financial Inc. is an externally managed real estate investment trust that invests in a diversified $4.9 billion portfolio of residential and commercial mortgage loans, mortgage-backed securities, consumer and corporate loans, and related derivatives, managed by an... Read more

$13.48-4.1% A.UpsideScore 6.1/10#6 of 24 REIT - Mortgage
QualityF-score6 / 9FCF yield
IncomeYield11.69%(5y avg 12.35%)Payout97.50%
Stop $13.16Target $15.51(default +15%)A.R:R -0.8:1
Analyst target$14.86+10.2%7 analysts
$15.51our TP
$13.48price
$14.86mean
$16

Sell if holding. Analyst target reached at $13.48 — A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (4.5% away). Chart setup: RSI 51 mid-range, Bollinger mid-band. Score 6.1/10, moderate confidence.

Passes 6/8 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 61d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-09-04
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Nov 4, 202661d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (3/4)
Strong growth profile
Margin of safety: 44%
Risks
Analyst target reached - limited upside remaining
Near 52-week high (4.5% away)
Sector modifier (Real Estate): -1.2

Key Metrics

P/E (TTM)8.3
P/E (Fwd)6.8
Mkt Cap$1.8B
EV/EBITDA
Profit Mgn51.5%
ROE12.2%
Rev Growth33.8%
Beta0.93
Dividend11.69%
Rating analysts12

Quality Signals

Piotroski F6/9MoatNarrow

Options Flow

P/C0.01bullish
IV87%elevated

Concentration Risks(10-K Item 1A)

  • MEDIUMregulatoryFHA and Ginnie Mae reverse mortgage programs
    10-K Item 1A: 'The performance of our Longbridge business is highly dependent on government-backed reverse mortgage programs. Changes to FHA, or Ginnie Mae policies could disrupt origination volumes'

Material Events(8-K, last 90d)

  • 2026-05-29Item 5.02LOW
    At Ellington Financial's 2026 Annual Meeting on May 28, 2026, stockholders approved the company's 2026 Equity Incentive Plan; the filing describes a compensatory plan approval, not a director or officer departure or appointment.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

10 dimensions · all in-band

GatesA.R:R -0.8=NEGATIVEExecutive change: officer departure/appointmentMomentum 5.6>=5.5Insider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 61d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Aggressive
RSI
51 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $13.21Resistance $13.69

Price Targets

$13
$16
A.Upside-4.1%
A.R:R-0.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (-4.1% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-11-04 (61d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is EFC stock a buy right now?

Sell if holding. Analyst target reached at $13.48 — A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Near 52-week high (4.5% away). Chart setup: RSI 51 mid-range, Bollinger mid-band. Prior stop was $13.16. Score 6.1/10, moderate confidence.

What is the EFC stock price target?

Take-profit target: $15.51 (-4.1% upside). Prior stop was $13.16. Stop-loss: $13.16.

What are the risks of investing in EFC?

Analyst target reached - limited upside remaining; Near 52-week high (4.5% away); Sector modifier (Real Estate): -1.2.

Is EFC overvalued or undervalued?

Ellington Financial Inc. trades at a P/E of 8.3 (forward 6.8). TrendMatrix value score: 5.4/10. Verdict: Sell.

What do analysts say about EFC?

12 analysts cover EFC with a consensus score of 3.8/5. Average price target: $15.

What does Ellington Financial Inc. do?Ellington Financial Inc. is an externally managed real estate investment trust that invests in a diversified $4.9...

Ellington Financial Inc. is an externally managed real estate investment trust that invests in a diversified $4.9 billion portfolio of residential and commercial mortgage loans, mortgage-backed securities, consumer and corporate loans, and related derivatives, managed by an affiliate of Ellington Management Group. Through its Longbridge Financial subsidiary, the company also originates, services, and invests in reverse mortgage loans insured by the FHA and securitized through Ginnie Mae.

Related stocks: MFA (MFA Financial, Inc.) · ADAM (Adamas Trust, Inc.) · RITM (Rithm Capital Corp.) · FBRT (Franklin BSP Realty Trust, Inc.) · TWO (Two Harbors Investment Corp)
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