Wall Street Sees a 19% Upside to Ellington Financial (EFC)

Ellington Financial Inc. (NYSE:EFC) is one of the best high growth stocks to consider. As of December 1, the average price target for EFC suggests an upside of 8%; however, the Street high suggests an upside of 19%. Priorly, on November 11, B. Riley Securities analyst Randy Binner maintained a Buy recommendation on EFC, along with a price target of $16.

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Separately, Ellington Financial reported its Q3 results on November 5. The company had a robust quarter, with a GAAP net income of $0.29 per share and adjusted distributable earnings of $0.53 per share. EFC’s overall portfolio also expanded by 12% during the third quarter. On the closing day of the third quarter, the company concluded the pricing of $400 million in five-year senior unsecured notes, and its cash and cash equivalents stood at $184.8 million as of September 30. Ellington Financial Inc. (NYSE:EFC) attributed its strong performance to larger net interest income from its credit portfolio, as well as robust credit performance from its loan businesses.

On November 10, the company announced a monthly dividend per share of $0.13, which will be distributed on December 31, to shareholders listed as of November 28.

Laurence Penn, Chief Executive Officer and President of Ellington, commented during the Q3 earnings call:

“Looking ahead, with conservative leverage, significant dry powder from our recent unsecured note issuance, and a steady pace of securitizations, we believe that Ellington Financial is well positioned to continue delivering strong and sustainable dividend coverage.”

Ellington Financial Inc. (NYSE:EFC) is a REIT that invests in different types of mortgage, consumer, and corporate credit assets.

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Disclosure. None.