Ellington Financial Prices Public Offering of ~8.78M Shares
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Offering Size: Ellington Financial priced an underwritten public offering of approximately 8.78 million shares at around $13.50 per share, aiming for total gross proceeds of $118.5 million, which will be used to redeem all outstanding Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock to optimize its capital structure.
- Underwriter Option: The underwriters have a 30-day option to purchase up to approximately 1.32 million additional shares, providing potential for further capital support and enhancing market confidence in the company's financial strategy.
- Market Reaction: Following the public offering announcement, Ellington Financial's stock traded about 2% lower during pre-market hours on Tuesday, indicating a cautious market response that may affect investor expectations regarding the company's future performance.
- Expected Closing Date: The offering is expected to close on January 28, 2026, subject to customary closing conditions, which will impact the timely utilization of funds and the execution of the company's strategic initiatives.
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: 13.900
Low
14.50
Averages
15.00
High
16.00
Current: 13.900
Low
14.50
Averages
15.00
High
16.00
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.
