Ellington Financial Buys Two Mortgage REITs Within Two Months
Portfolio Pulse from Ethan Roberts
Ellington Financial Inc. (EFC) has acquired two mortgage REITs, Arlington Asset Investment Corp. (AAIC) and Great Ajax Corp. (AJX), within two months. The acquisitions are seen as risky due to the poor performance of both AAIC and AJX in recent years. However, analysts have been bullish on EFC recently, with upgrades and maintained price targets from Keefe, Bruyette & Woods Inc. and JMP Securities.
July 06, 2023 | 8:22 pm
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NEUTRAL IMPACT
Ellington Financial has acquired two mortgage REITs, AAIC and AJX, despite their recent poor performance. However, analysts remain bullish on EFC.
The acquisitions of AAIC and AJX by EFC are seen as risky due to the poor performance of both companies in recent years. However, analysts have been bullish on EFC recently, which could potentially offset the perceived risk.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Arlington Asset Investment Corp. has been acquired by Ellington Financial. The company has had a poor performance in recent years.
AAIC has been acquired by EFC. The company's poor performance in recent years could potentially impact the stock negatively in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Great Ajax Corp. has been acquired by Ellington Financial. The company has had a poor performance in recent years.
AJX has been acquired by EFC. The company's poor performance in recent years could potentially impact the stock negatively in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80