Ellington Financial Announces Redemption of Preferred Shares

Written by Emily J. Thompson, Senior Investment Analyst

EFC+1.05%

Source: Newsfilter

Updated: 1d ago

0mins

Source: Newsfilter

Redemption Plan: Ellington Financial's Board has authorized the redemption of 4.6 million shares of Series A Preferred Stock at a price of $25.00 per share plus accrued dividends, effective February 27, 2026, aimed at optimizing capital structure and reducing future dividend obligations.
Trading Suspension: The Series A Preferred Stock will be suspended from trading on the NYSE before the redemption date, allowing the company to focus resources on other investment opportunities while mitigating market volatility impacts on shareholders.
Transparent Process: The redemption will be executed through the Depository Trust Company (DTC), with Equiniti Trust Company acting as the redemption agent, ensuring a smooth redemption process that enhances investor confidence and maintains the company's reputation.
Forward-Looking Statements: The company cautions that future performance may be influenced by various factors; while the redemption plan aims to enhance financial flexibility, attention must be paid to potential impacts from market volatility and interest rate changes on operations.

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EFC

$13.5+Infinity%1D

Analyst Views on EFC

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

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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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.