What happened
According to a May 13, 2026, SEC filing, Delphi Financial Group increased its stake in Ellington Financial (EFC 0.97%) by 686,639 shares during the first quarter. The estimated transaction value, calculated using the quarter’s average closing price, was $8.73 million. The value of the position rose by $6.89 million quarter over quarter, reflecting both additional shares and changes in the stock price.
What else to know
- After the buy, Ellington Financial represents 7.53% of Delphi Financial Group’s 13F reportable AUM.
- Top holdings after the filing:
- NYSEMKT: JAAA: $32.57 million (14.7% of AUM)
- NYSEMKT: ASHR: $19.27 million (8.7% of AUM)
- NYSEMKT: FXI: $17.10 million (7.7% of AUM)
- NYSE: TSM: $16.16 million (7.3% of AUM)
- NYSE: EFC: $16.69 million (7.5% of AUM)
- As of May 15, 2026, Ellington Financial shares were priced at $13.33, up 0.38% over the past year, lagging the S&P 500 by 24.83 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close May 15, 2026) | $13.33 |
| Market capitalization | $1.7 billion |
| Revenue (TTM) | $306.51 million |
| Net income (TTM) | $146.87 million |
Company snapshot
- Offers a diversified portfolio of mortgage-backed securities, residential and commercial mortgage loans, asset-backed securities, corporate debt and equity, and consumer loans.
- Generates revenue from managing and acquiring a range of financial assets across mortgage, consumer, and corporate markets.
- Serves a broad range of counterparties seeking exposure to mortgage-related and structured finance assets in the United States.
Ellington Financial is a real estate investment trust specializing in mortgage and consumer credit assets, focused on generating stable income through diversified investment strategies. The company leverages deep expertise in structured finance and credit markets to manage risk and capitalize on opportunities across various asset classes.
What this transaction means for investors
Delphi Financial Group recently acquired a significant additional stake in Ellington Financial. The company was already one of its largest holdings, but this move raises it from a No. 7 to No. 6 spot, indicating that it already thought highly of Ellington’s prospects and continues to do so.
One likely reason is Ellington’s record earnings in the first quarter of 2026. This indicates that business fundamentals are strong, and obviously, this is an important factor in any investor’s decision. It’s also been a consistent dividend payer, reliably issuing monthly dividends since 2010. This reliable cash flow is another reason Delphi might find Ellington attractive.
Earlier this year, Ellington issued common stock to redeem its Series A preferred shares, which carried interest costs above 9%. Replacing that expensive preferred equity with common shares reduced financing costs and benefited common shareholders, including Delphi.
For individual investors, Delphi’s increased stake implies a vote of confidence, which is reassuring. But all investments have inherent risk, and Ellington is no different. Financial entities like this company are affected by changes in interest rates, inflation, recessions, and other economic indicators. Investors need to consider these risks along with the positive signals before making an investment decision.
Pamela Kock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
