Overview

• U.S. mortgage and credit asset investor's Q1 adjusted EPS and net income beat analyst expectations

• Strong Q1 driven by diversified portfolio and Longbridge segment gains, including securitization activity

Outlook

• Company did not provide specific guidance for the current quarter or full year in its press release

Result Drivers

• LONGBRIDGE SEGMENT - Strong proprietary reverse mortgage loan originations, securitization gains, and a $17 mln litigation settlement drove Longbridge's contribution

• CREDIT PORTFOLIO - Higher net interest income and gains on non-QM loans, retained tranches, and Agency-eligible loans supported credit portfolio performance

• SECURITIZATION ACTIVITY - Increased volume and larger deal sizes in securitizations improved execution economics and attracted a broader investor base

Company press release: ID:nBw5mt6P3a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for Ellington Financial Inc is $14.50, about 11.5% above its May 4 closing price of $13.01

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

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