Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) Sees Significant Increase in Short Interest

Key Points

• Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) reported a significant 54.8% increase in short interest, rising from 384,800 shares to 595,500 shares by September 30th.
• The company announced a quarterly dividend of $0.10 per share, resulting in a dividend yield of 16.6%, although its dividend payout ratio stands at -76.92%.
• Recent analyst reports downgraded CHMI from "buy" ratings to "hold" and "neutral," with a consensus rating of "Hold" and a price target of $4.00.

Cherry Hill Mortgage Investment Corporation (NYSE:CHMI - Get Free Report) was the recipient of a large increase in short interest during the month of September. As of September 30th, there was short interest totaling 595,500 shares, an increase of 54.8% from the September 15th total of 384,800 shares. Based on an average daily trading volume, of 288,900 shares, the short-interest ratio is currently 2.1 days. Based on an average daily trading volume, of 288,900 shares, the short-interest ratio is currently 2.1 days.

Cherry Hill Mortgage Investment Price Performance

NYSE:CHMI traded up $0.04 on Wednesday, reaching $2.42. The stock had a trading volume of 92,823 shares, compared to its average volume of 351,850. Cherry Hill Mortgage Investment has a 12-month low of $2.25 and a 12-month high of $3.68. The company has a market cap of $87.04 million, a price-to-earnings ratio of -4.64 and a beta of 0.96. The firm's fifty day moving average is $2.67 and its two-hundred day moving average is $2.78.

Cherry Hill Mortgage Investment (NYSE:CHMI - Get Free Report) last released its earnings results on Thursday, August 7th. The real estate investment trust reported $0.10 EPS for the quarter, missing the consensus estimate of $0.12 by ($0.02). Cherry Hill Mortgage Investment had a negative net margin of 14.28% and a positive return on equity of 15.55%. The business had revenue of $6.04 million during the quarter, compared to analyst estimates of $2.19 million. As a group, research analysts forecast that Cherry Hill Mortgage Investment will post 0.38 earnings per share for the current fiscal year.

Cherry Hill Mortgage Investment Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Investors of record on Tuesday, September 30th will be given a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 16.6%. The ex-dividend date of this dividend is Tuesday, September 30th. Cherry Hill Mortgage Investment's dividend payout ratio (DPR) is -76.92%.

Wall Street Analysts Forecast Growth

CHMI has been the subject of several recent analyst reports. Wall Street Zen cut Cherry Hill Mortgage Investment from a "buy" rating to a "hold" rating in a report on Sunday, September 28th. Janney Montgomery Scott cut shares of Cherry Hill Mortgage Investment from a "buy" rating to a "neutral" rating in a research note on Monday, October 13th. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of Cherry Hill Mortgage Investment in a report on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Cherry Hill Mortgage Investment currently has a consensus rating of "Hold" and a consensus price target of $4.00.

Hedge Funds Weigh In On Cherry Hill Mortgage Investment

Several hedge funds and other institutional investors have recently modified their holdings of the company. Wealth Preservation Advisors LLC purchased a new stake in shares of Cherry Hill Mortgage Investment during the 1st quarter worth about $33,000. Glenview Trust co acquired a new stake in shares of Cherry Hill Mortgage Investment in the second quarter worth $34,000. Banco BTG Pactual S.A. purchased a new position in shares of Cherry Hill Mortgage Investment in the 1st quarter valued at $36,000. Envestnet Asset Management Inc. purchased a new position in shares of Cherry Hill Mortgage Investment in the 2nd quarter valued at $45,000. Finally, Ritholtz Wealth Management purchased a new stake in Cherry Hill Mortgage Investment during the 2nd quarter worth $66,000. 18.49% of the stock is owned by institutional investors and hedge funds.

About Cherry Hill Mortgage Investment

Cherry Hill Mortgage Investment Corporation, a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the United States. It operates through Investments in RMBS (residential mortgage-backed securities) and Investments in Servicing Related Assets segments.

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