Ellington Financial Upped to Strong Buy - Analyst Blog
June 17 2013 - 11:00AM
Zacks
On Jun 15, 2013, Zacks Investment Research upgraded
Ellington Financial LLC (EFC) to a Zacks Rank #1
(Strong Buy).
Why the Upgrade?
Ellington Financial has been witnessing rising earnings estimates
on the back of strong fiscal first-quarter 2013 results. Moreover,
shares of this mortgage investment company appreciated 10.6% year
to date.
On May 6, 2013, Ellington Financial reported first-quarter net
income of $40.3 million compared with $24.8 million in the previous
quarter. The sequential improvement was driven by higher net
investment income and lower operating expenses.
Net investment income was $10.6 million, which more than doubled
from the previous quarter. On a per share basis, net investment
income came in at 51 cents per share, substantially higher than 18
cents recorded in the prior quarter. Total expenses reduced 40.0%
sequentially to $7.8 million. The decline was attributable to a
reduction in incentive fees and other operating expenses.
Over the last 60 days, the Zacks Consensus Estimate for 2013 jumped
38.2% to $4.05 per share as all estimates moved north for Ellington
Financial. For 2014, all the estimates moved higher, pushing the
Zacks Consensus Estimate up by 7.8% to $3.17 per share.
Other Stocks to Consider
Besides Ellington Financial, other stocks in the same industry that
are worth considering include Home Loan Servicing
Solutions, Ltd. (HLSS) and Nationstar Mortgage
Holdings Inc. (NSM) with a Zacks Rank #1, while
KKR Financial Holdings LLC (KFN) carries a Zacks
Rank #2 (Buy).
ELLINGTON FINL (EFC): Free Stock Analysis Report
HOME LOAN SERVC (HLSS): Free Stock Analysis Report
KKR FINL HLDGS (KFN): Free Stock Analysis Report
NATIONSTAR MTGE (NSM): Free Stock Analysis Report
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