Back to top

Analyst Blog

On May 10, 2013, Zacks Investment Research upgraded Ellington Financial LLC (EFC - Snapshot Report) to a Zacks #1 Rank (Strong Buy).

Why the Upgrade?

Ellington Financial has been witnessing rising earnings estimates on the back of strong fiscal first-quarter 2013 results. Moreover, shares of this mortgage investment company appreciated 15.6% year to date.

On May 6, 2013, Ellington Financial reported first-quarter net income of $40.3 million compared with $24.8 million in the previous quarter.

The sequential improvement was driven by higher net investment income and interest income as well as lower operating expenses.

Net investment income was $10.6 million, up substantially from the previous quarter. On a per share basis, net investment income came in at 51 cents per share, substantially higher than 18 cents recorded in the prior quarter. Total expenses reduced 39.8% sequentially to $7.8 million. The decline was attributable to a reduction in incentive fees and other operating expenses. Interest income nudged up 10.4% to $18.4 million.

Over the last 7 days, 1 out of 2 estimates for 2013 has been revised upward, raising the Zacks Consensus Estimate by 14.8% to $3.44 per share. For 2014, 1 out of 2 estimates moved higher over the same time frame, pulling the Zacks Consensus Estimate by 2.0% to $3.00 per share.

Other Stocks to Consider

Other stocks in the same sector that are also worth considering include Home Loan Servicing Solutions, Ltd. (HLSS - Snapshot Report), Nationstar Mortgage Holdings Inc. (NSM - Snapshot Report) and First Pactrust Bancorp, Inc. (BANC - Snapshot Report). All these carry a Zacks Rank #1 (Strong Buy). 

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%