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KBW labels Ellington, Longbridge as outperformers after robust Q2 earnings report
['Neil Pierson', 'Flávia Furlan Nunes', 'Jonathan Delozier', 'Housingwire Automation', 'John Mcmanus', 'Sarah Wolak']
HousingWire
“We continue to believe a premium to book is warranted given the stable book value, growing mortgage banking businesses, and dividend coverage.
Shares currently trade at 0.97x current book value and a ~12% dividend yield.”
“The company also has a relatively stable book value and upside earnings optionality from its mortgage banking business.”
Longbridge’s HECM Mortgage-Backed Securities (HMBS) market share hit a new high of 29% for the quarter, making it the No.
“We’re actually, in some cases, seeing the prop product take some of that market share away from the government product.”