Overview

* Ellington Credit ( EARN ) Q2 net income was $4.3 mln, GAAP EPS at $0.11

* Net investment income rose to $8.5 mln, or $0.23 per share

* Company purchased $115.7 mln and sold $29.2 mln of CLO investments

Outlook

* Ellington Credit ( EARN ) expects elevated loan repricing to create opportunities for outperformance

* Company aims for strong total returns with balanced mezzanine and equity tranches

Result Drivers

* CLO PORTFOLIO RAMP-UP - Co's CLO portfolio ramp-up and active trading drove net investment income increase, per CEO Laurence Penn

* PORTFOLIO REPOSITIONING - Co actively repositioned portfolio by adding mezzanine debt tranches and moderating new-issue equity exposure

* SECONDARY MARKET OPPORTUNITIES - Co took advantage of secondary market opportunities to rotate into higher-quality, longer-dated equity positions

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS $0.11

Q2 Net $4.71

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the closed end funds peer group is "hold"

* Wall Street's median 12-month price target for Ellington Credit Co ( EARN ) is $5.88, about 13.2% above its November 19 closing price of $5.10

* The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)