Ellington Residential Mortgage REIT [EARN] Stock Forecast

Mortgage REITs have been slammed by the fallout of the ongoing regional banking crisis amid a resurgence of interest rate volatility and credit concerns, erasing their once-robust gains for 2023. Commercial mREITs' exposure to the troubled office sector has come into focus following a wave of mega-sized loan defaults from over-levered private owners. We examine these REITs' sector-by-sector exposure.

The massive beatdown in mortgage REITs and BDCs triggered a wave of upgrades. It was quite a while since we had so many bullish outlooks for the sector.

U.S. equity markets tumbled this week after the sudden collapse of a pair of technology-focused banks sparked concerns over financial stability and overshadowed a generally solid slate of employment data. Effectively erasing all of its gains for the year and posting its worst week since September 2022, the S&P 500 dipped 4.5% while the Mid-Cap and Small-Cap benchmarks plunged 7%.

Jerome Powell swings a wrecking ball into the markets. Even assets that would normally benefit from higher rates are down because of economic risk.

Ellington Residential (EARN) delivered earnings and revenue surprises of 25% and 114.91%, respectively, for the quarter ended December 2022. Do the numbers hold clues to what lies ahead for the stock?

Slash to 11% or 12% incoming. Shares already dipped some, though many investors don't know about the cut yet.

Big unsustainable yield at a premium valuation. This share isn't for investors, it's for suckers. The valuation is at historically high levels. People who keep holding onto shares are not investing.

Similar shares at different valuations are the basis for alpha. The research is so hard, it requires adding dividends or looking at a chart.

Imagine stocks or funds that pay-out their dividends once-a-month! Unlike waiting for quarterly, semi-annual or (ugh) annual payouts, your angst waiting for money is reduced by 300%, or more! These January U.S. exchange-traded monthly-paid (MoPay) dividends, upsides, and net-gains include: 1. Stocks by-yield (101); 2. Stocks by price-upside (30); 3. Closed-End-Investments, Exchange-Traded-Funds & Notes (CEICs/ETFs/ETNs) by-yield >8.69% (80).

U.S. equity markets posted broad-based gains after the closely-watched CPI inflation report showed signs of easing inflationary pressures, strengthening the case for the Fed to slow its pace of rate hikes. Pushing its year-to-date gains to above 4% following a dismal year of performance in 2022, the S&P 500 advanced 2.7% on the week while the tech-heavy Nasdaq 100 rallied 4.5%.

Ellington Residential Mortgage REIT is a US stock , located in Old greenwich of Ct and trading under the symbol EARN

Ellington Residential Mortgage REIT stock price is $7.1 today.

Yes, Ellington Residential Mortgage REIT is a publicly traded company.