Ellington Financial Announces Estimated Book Value Per Common Share as of May 31, 2024

Rhea-AI Summary

Ellington Financial (NYSE: EFC) has announced its estimated book value per common share as of May 31, 2024, is $13.81. This estimate factors in the previously declared monthly dividend of $0.13 per share, which is payable on June 25, 2024, to shareholders of record on May 31, 2024. The company emphasizes this estimate as it aligns with their financial performance and strategic dividend distribution.

Positive

• Estimated book value per share is $13.81 as of May 31, 2024.
• Monthly dividend of $0.13 per share scheduled for June 25, 2024.

Negative

• None.

Insights

Financial Analyst

Ellington Financial Inc. (NYSE: EFC) has announced its estimated book value per share of common stock as $13.81 as of May 31, 2024. Book value per share is a key indicator of a company's financial health and intrinsic value, as it represents the net asset value attributed to each share of common stock. This number being $13.81 is critical for investors as it offers a benchmark for comparing the stock's market price. If the market price is below the book value, the stock could be considered undervalued.

It's also important to consider that this estimate includes the effect of a monthly dividend of $0.13 per share, which reflects the company's commitment to returning value to shareholders. However, dividends reduce the book value since they are paid out from the company's retained earnings.

For short-term investors, knowing the book value helps in making informed decisions about buying or selling the stock. Long-term investors, on the other hand, may be more interested in how this figure changes over time to assess growth and stability. A stable or increasing book value can indicate sound management and solid financial footing, which can be good signs for long-term investment.

Market Research Analyst

The book value per share of $13.81 announced by Ellington Financial aligns with industry norms for financial firms. However, relying solely on book value can be limiting. Investors often also consider other metrics like price-to-book (P/B) ratio, which compares the market price to the book value. If Ellington's P/B ratio is below 1, it suggests that the stock might be undervalued, whereas a higher ratio might imply overvaluation.

Moreover, the dividend detail should not be overlooked. Regular dividends can make the stock attractive to income-focused investors. The $0.13 monthly dividend translates to an annual dividend yield when compared to the stock price, which is an important metric for assessing ongoing income potential from the investment.

From a market perspective, this announcement could stabilize investor sentiment by showing transparency and providing insights into the company's valuation. However, investors should also be mindful of market volatility and broader economic conditions which could impact the stock’s future performance.

OLD GREENWICH, Conn.--(BUSINESS WIRE)-- Ellington Financial Inc. (NYSE: EFC) (the "Company") today announced its estimated book value per share of common stock of $13.81 as of May 31, 2024. This estimate includes the effect of the previously announced monthly dividend of $0.13 per share of common stock, payable on June 25, 2024 to holders of record on May 31, 2024, with the same ex-dividend date.

Cautionary Statement Regarding Forward-Looking Statements

Estimated book value per common share is subject to change upon completion of the Company's month-end and quarter-end valuation procedures relating to its investment positions, and any such change could be material. There can be no assurance that the Company's estimated book value per common share as of May 31, 2024 is indicative of what the Company's results are likely to be for the three- or six- month periods ending June 30, 2024 or in future periods, and the Company undertakes no obligation to update or revise its estimated book value per common share prior to issuance of financial statements for such periods.

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. The Company's actual results may differ from its beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as "believe," "expect," "anticipate," "estimate," "project," "plan," "continue," "intend," "should," "would," "could," "goal," "objective," "will," "may," "seek" or similar expressions or their negative forms, or by references to strategy, plans, or intentions. Examples of forward-looking statements in this press release include statements regarding the Company's payment of dividends. Forward-looking statements are based on our beliefs, assumptions and expectations of our future operations, business strategies, performance, financial condition, liquidity and prospects, taking into account information currently available to us. These beliefs, assumptions, and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations and strategies may vary materially from those expressed or implied in our forward-looking statements. The following factors are examples of those that could cause actual results to vary from our forward-looking statements: changes in interest rates and the market value of the Company's investments, market volatility, changes in mortgage default rates and prepayment rates, the Company's ability to borrow to finance its assets, changes in government regulations affecting the Company's business, the Company's ability to maintain its exclusion from registration under the Investment Company Act of 1940, the Company's ability to achieve cost savings and efficiencies, operating efficiencies, synergies and other benefits, including the increased scale, and avoid potential business disruption from its completed merger with Arlington Asset Investment Corp.; the Company's ability to maintain its qualification as a real estate investment trust, or "REIT," and other changes in market conditions and economic trends, such as changes to fiscal or monetary policy, heightened inflation, slower growth or recession, and currency fluctuations. Furthermore, forward-looking statements are subject to risks and uncertainties, including, among other things, those described under Item 1A of the Company's Annual Report on Form 10-K, which can be accessed through the Company's website at www.ellingtonfinancial.com or at the SEC's website (www.sec.gov). Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected or implied may be described from time to time in reports the Company files with the SEC, including reports on Forms 10-Q, 10-K and 8-K. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

This release and the information contained herein do not constitute an offer of any securities or solicitation of an offer to purchase securities.

About Ellington Financial

Ellington Financial invests in a diverse array of financial assets, including residential and commercial mortgage loans and mortgage-backed securities, reverse mortgage loans, mortgage servicing rights and related investments, consumer loans, asset-backed securities, collateralized loan obligations, non-mortgage and mortgage-related derivatives, debt and equity investments in loan origination companies, and other strategic investments. Ellington Financial is externally managed and advised by Ellington Financial Management LLC, an affiliate of Ellington Management Group, L.L.C.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240626513032/en/

Investors:

Ellington Financial

Investor Relations

(203) 409-3575

info@ellingtonfinancial.com



or



Media:

Amanda Shpiner/Grace Cartwright

Gasthalter & Co.

for Ellington Financial

(212) 257-4170

ellington@gasthalter.com

Source: Ellington Financial Inc.

FAQ

What is Ellington Financial's estimated book value per share as of May 31, 2024?

Ellington Financial's estimated book value per share as of May 31, 2024, is $13.81.

When is Ellington Financial's next dividend payment?

Ellington Financial's next dividend payment of $0.13 per share is scheduled for June 25, 2024.

What is the record date for Ellington Financial's dividend payable on June 25, 2024?

The record date for Ellington Financial's dividend payable on June 25, 2024, is May 31, 2024.