EFC stock: buy or sell?

EFC stock price: $18.85 0.37% At close on February 14th, 2020

Updated on:
February 14th, 2020

5

Ellington Financial inched 0.37% to $18.85 after yesterday all time highs. Counting Feb/14, it's been 3 climbing sessions in a row, soaring $0.21 or 1.12%.

Ellington Financial LLC, through its subsidiary Ellington Financial Operating Partnership LLC, operates as a specialty finance company in the United States.

Should I buy EFC stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. That's why is so important to define your own trading strategy that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, 2 buy setups are elegible for Ellington Financial stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Ellington Financial stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't find any rating for EFC stock for the last 30 days.

EFC stock analysis

Daily outlook

Ellington Financial inched 0.37% on February 14th to $18.85 after topping to all time highs on Thursday.

Ellington Financial inched 0.37% to $18.85 after yesterday all time highs. From a daily perspective, EFC is in a short term uptrend after plotting its last bottom ($18.23, on February 3rd) higher than the previous bottom, and its last top ($19.05, on Thursday) also over the previous top. Now trading in between its last bottom and last top EFC might consolidate in a plain range, waiting to break out over $19.05 or down under $18.23. On Thursday, EFC hit new all time highs, pushing higher previous ATH of $18.85 recorded on Jan 21st. New ATHs are usual entry points for many trading setups as there aren't higher resistences. Since last October when SMA50d and SMA100d crossed up, EFC price gained $1.39 per share (7.96%). On January/28 EFC price bounced up over the SMA of 50 days demonstrating to be a significant support for this stock.

EFC stock chart (daily)

Weekly outlook

Ellington Financial ended this week at $18.85 after reaching a new all time high ($19.05) and appreciated a slightly good 1.07%. With this, it's been 3 green weeks in a row, gaining $0.68 or 3.66%.

From a weekly outlook, EFC is marking an uptrend of rising tops and rising bottoms. Since its last top late January at $18.85, price slid and bounced up back from $17.94. Crossing $18.85 with intention in the next few weeks will confirm this strong uptrend.. Since late September 2019 when SMA10w and SMA20w crossed up, EFC price gained $1.37 per share (7.84%). Since early September 2019 when EFC stock price broke up the SMA20w line, it gained $2.05 (12.20%).

EFC stock chart (weekly)

EFC stock price history

EFC IPO was on October 8th, 2010 at $6.98 per share1. Since then, EFC stock grew a 170.10%, with a yearly average of 18.90%. If you had invested right after EFC's IPO a $1,000 in EFC stock in 2010, it would worth $1,701.00 today.

1: Adjusted price after possible price splits or reverse-splits.

EFC stock historical price chart

EFC stock reached all-time highs on Thursday with a price of $19.05.

EFC stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we have not detected any price target for Ellington Financial stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Ellington Financial reported very good results for 2018-Q4 . Ellington Financial jumped Earnings per Share (EPS) by 13.90%, beating experts consensus of $0.36. Ellington Financial posted $0.41.
EFC earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.47n/a
2017-Q2-n/a0.16n/a
2017-Q32017-11-060.280.19-32.1%
2017-Q42018-02-130.260.22-15.4%
2018-Q12018-05-070.310.323.2%
2018-Q22018-08-060.340.365.9%
2018-Q32018-11-070.370.48.1%
2018-Q42019-02-200.360.4113.9%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Ellington Financial annual sales skyrocketed an amazing 38.42% to $69.83 M dollars from $50.45 marked in 2017. In contrary, its profit margin (compared to sales) stayed constant to 66.84%, that is $46.68 million.

EFC annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$104 M-$79 M75.7%-
2014$84 M-19.11%$59 M70.5%-24.65%
2015$92 M10.20%$38 M41.2%-35.62%
2016$64 M-30.93%$-16.01 M-25.1%-142.03%
2017$50 M-21.03%$34 M67.4%-312.29%
2018$70 M38.42%$47 M66.8%37.36%

Quarterly financial results

Ellington Financial reported $5.46 million in revenues for 2018-Q4, a -56.13% less compared to previous quarter. Reported quarter earnings marked $-2.22 million with a profit margin of -40.62%. Profit margin plummed a -94.19% compared to previous quarter when profit margin was 53.57%. When comparing revenues to same quarter last year, Ellington Financial sales marked a hair-raising correction and collapsed a -59.78%. Looking back to recent quarterly results, Ellington Financial posted 2 negative quarters in a row.
EFC quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$22 M-$15 M69.4%-
2017-Q2$17 M-23.80%$5 M30.2%-66.88%
2017-Q3$14 M-15.31%$6 M43.6%22.43%
2017-Q4$14 M-4.55%$7 M54.9%20.16%
2018-Q1$26 M94.26%$21 M79.8%182.63%
2018-Q2$29 M8.28%$21 M74.3%0.73%
2018-Q3$12 M-56.42%$7 M53.6%-68.57%
2018-Q4$5 M-56.13%$-2 M-40.6%-133.27%

Ellington Financial ownership

When you are planning to buy shares of a company, it's worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Ellington Financial, 7.49% of all outstanding shares are owned by its staff.

In case of Ellington Financial stock, 49.42% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for EFC stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Ellington Financial:

EFC
Market cap$828.3 M
Total shares43.9 M
Float shares32.3 M
  - Institutional holdings (%)49.4%
  - Insider holdings (%)7.5%
Shares in short selling0.0%

EFC summary

Friday, February 14th, 2020
Open$18.84
Close$18.85
Day range$18.77 - $18.93
Previous close$18.78
Session gain0.37%
Average true range$0.20
50d mov avg$18.25
100d mov avg$18.01
200d mov avg$17.45
Daily patternlt06a
Weekly pattern lb03b

Ellington Financial performance

To better understand Ellington Financial performance you must becnhmark its gains with other related stocks in same sector or industry. In the following table, we compare Ellington Financial performance to :
Stock3m6m12m
EFCEllington Financi...2.67%12.34%21.14%

Ellington Financial competitors

Unfortunately, we could not find any public company that could be defined as Ellington Financial competitor. This doesn't mean Ellington Financial does not have any competitor in the market, it's just we could not detected it.