In a report released today, Michael Diana from Maxim Group reiterated a Buy rating on Ellington Financial (EFC), with a price target of $19.50. The company’s shares closed yesterday at $16.85, close to its 52-week high of $16.87.
Diana said:
“At its meeting with analysts on January 23, management indicated that conversion to REIT status for U.S. federal income tax purposes was probable, in time to qualify for REIT dividend treatment for the entire FY19. Yesterday, management followed through: EFC plans to elect to be taxed as a REIT effective January 1, 2019, so all EFC dividends received in 2019 will be taxed at 80% of the ordinary income tax rate and will be accompanied by a Form 1099 (instead of a Schedule K-1).”
According to TipRanks.com, Diana is a 5-star analyst with an average return of 6.3% and a 60.0% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Westamerica Bancorporation, and Pennantpark Floating Rate.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Ellington Financial with a $19.50 average price target.
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The company has a one-year high of $16.87 and a one-year low of $14.12. Currently, Ellington Financial has an average volume of 89.91K.
Based on the recent corporate insider activity of 11 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EFC in relation to earlier this year.
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Ellington Financial LLC engages in the provision of investment services. It manages mortgage-backed assets, securities, loans and real estate debts. The company was founded on July 9, 2007 and is headquartered in Old Greenwich, CT.
