Ellington Financial's stock has fallen 4.40% and hit a 20-day low amid broader market gains, with the Nasdaq-100 up 0.79% and S&P 500 up 0.30%.
The company has priced its public offering at $13.50 per share for approximately 8.78 million shares, aiming for total gross proceeds of $118.5 million. The proceeds will be used to redeem all outstanding Series A Preferred Stock, which is expected to improve the company's capital structure and reduce future financial costs. Despite the offering indicating strong market demand, the stock reacted negatively, trading lower in pre-market hours, reflecting cautious investor sentiment.
This public offering is a strategic move for Ellington Financial, enhancing its capital structure and potentially positioning the company for future growth. However, the immediate market reaction suggests that investors are wary of dilution and the implications of the offering on the company's stock performance.
Wall Street analysts forecast EFC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EFC is 15.00 USD with a low forecast of 14.50 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
Wall Street analysts forecast EFC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EFC is 15.00 USD with a low forecast of 14.50 USD and a high forecast of 16.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 13.360
Low
14.50
Averages
15.00
High
16.00
Current: 13.360
Low
14.50
Averages
15.00
High
16.00
Piper Sandler
Overweight
downgrade
$6
2025-12-23
Reason
Piper Sandler
Price Target
$6
AI Analysis
2025-12-23
downgrade
Overweight
Reason
Piper Sandler lowered the firm's price target on Ellington Credit to $6 from $6.50 and keeps an Overweight rating on the shares as part of a Q4 preview for the asset management group. Deal activity has begun to recover, but private credit has dominated headlines as investors worry about a potential surge in defaults, the analyst tells investors in a research note. Piper believes the concerns are overstated, saying fundamentals are "solid" with loan- to-value ratios in the 30%-40% range, "providing substantial cushion against losses."
UBS
Neutral
maintain
2025-09-03
Reason
UBS
Price Target
2025-09-03
maintain
Neutral
Reason
UBS raised the firm's price target on Ellington Financial to $13.50 from $12.50 and keeps a Neutral rating on the shares.
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JonesResearch
Jason Weaver
Hold
to
Buy
upgrade
$14.25
2025-08-13
Reason
JonesResearch
Jason Weaver
Price Target
$14.25
2025-08-13
upgrade
Hold
to
Buy
Reason
JonesResearch analyst Jason Weaver upgraded Ellington Financial to Buy from Hold with a $14.25 price target following the company's Q2 report. The firm cites the likelihood of an upcoming dividend increase, demonstrated hedging acumen among peers to protect book value amid market volatility and an active securitization platform that it sees offering "attractive financing and low risk to equity capital."
UBS
Neutral
maintain
$12
2025-07-10
Reason
UBS
Price Target
$12
2025-07-10
maintain
Neutral
Reason
UBS raised the firm's price target on Ellington Financial to $12.50 from $12 and keeps a Neutral rating on the shares.
About EFC
Ellington Financial Inc. is a real estate investment trust. The Company acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets. The Company’s segments include the Investment Portfolio Segment and the Longbridge Segment. The Investment Portfolio Segment is focused on investing in a diverse array of financial assets, including residential and commercial mortgage loans, residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), consumer loans and asset-backed securities (ABS), including ABS-backed by consumer loans, collateralized loan obligations (CLOs), non-mortgage- and mortgage-related derivatives, debt and equity investments in loan origination companies, and other strategic investments. The Longbridge Segment is focused on the origination and servicing of, and investment in, reverse mortgage loans. The Company is externally managed and advised by Ellington Financial Management LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
