Cherry Hill Mortgage Investment (NYSE:CHMI) Announces Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Mixed quarter: CHMI beat EPS estimates ($0.14 vs. $0.12) but revenue missed ($4.64M vs. $10.30M) and reported a GAAP net loss of $0.05 with book value per share down 6.1%, reflecting near‑term mark‑to‑market pressure.
• Liquidity and payout: The company ended the quarter with $47M of unrestricted cash, modest leverage (5.5x) and paid a $0.10 quarterly dividend (annualized $0.40, ~15.5% yield), although the dividend payout ratio is deeply negative.
• Hedging and outlook: Management deployed about $396M notional of swaps/TBAs/futures but has not elected hedge accounting so derivative fair‑value swings flow through GAAP; they expect ongoing volatility but noted April stabilization and see attractive levered returns for RMBS/MSR if markets calm.

Cherry Hill Mortgage Investment (NYSE:CHMI - Get Free Report) announced its earnings results on Thursday. The real estate investment trust reported $0.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.12 by $0.02, FiscalAI reports. The firm had revenue of $4.64 million during the quarter, compared to analyst estimates of $10.30 million. Cherry Hill Mortgage Investment had a net margin of 7.28% and a return on equity of 16.21%.

Here are the key takeaways from Cherry Hill Mortgage Investment's conference call:

• Q1 results — GAAP net loss was $0.05 per diluted share and book value per common share fell 6.1% to $3.23 (economic return -3.2% and NAV down ~3.3%), signaling near-term mark-to-market pressure on equity.
• Liquidity and capital maintenance — the company ended the quarter with $47 million of unrestricted cash, maintained modest leverage at 5.5x, and paid a $0.10 per-share common dividend (preferred dividends were also paid).
• Portfolio composition and prepayment dynamics — MSR UPB was $15.6 billion (market value ≈ $213 million) and MSR + RMBS together comprise most of equity capital, with low MSR net CPR (~4.5%) and RMBS CPR (~8%) and only ~14% of the mortgage universe refinanceable, which supports mortgage technicals if volatility abates.
• Hedging and mark-to-market treatment — management deployed about $396 million notional of swaps/TBAs/futures and acted in March to protect book value, but the company has not elected hedge accounting so derivative fair-value changes flow through GAAP results.
• Outlook and return potential — management expects elevated near-term volatility from geopolitical risk but notes April stabilization (book value up ~2% since 3/31) and cites estimated levered returns of mid‑to‑high‑teens for RMBS and ~10–12% for MSR if market stability persists.

Cherry Hill Mortgage Investment Stock Performance

NYSE CHMI traded down $0.01 on Thursday, reaching $2.58. The company's stock had a trading volume of 97,683 shares, compared to its average volume of 149,028. Cherry Hill Mortgage Investment has a twelve month low of $2.17 and a twelve month high of $3.31. The stock has a market cap of $94.61 million, a PE ratio of -19.81 and a beta of 0.98. The firm's 50 day moving average is $2.64 and its two-hundred day moving average is $2.56.

Cherry Hill Mortgage Investment Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, April 30th. Shareholders of record on Tuesday, March 31st were issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 15.5%. The ex-dividend date of this dividend was Tuesday, March 31st. Cherry Hill Mortgage Investment's dividend payout ratio is presently -307.69%.

Institutional Investors Weigh In On Cherry Hill Mortgage Investment

A number of institutional investors and hedge funds have recently bought and sold shares of the business. O Shaughnessy Asset Management LLC lifted its stake in Cherry Hill Mortgage Investment by 34.3% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 25,546 shares of the real estate investment trust's stock valued at $65,000 after buying an additional 6,525 shares in the last quarter. XTX Topco Ltd purchased a new stake in Cherry Hill Mortgage Investment during the fourth quarter valued at about $27,000. Glenview Trust co purchased a new stake in Cherry Hill Mortgage Investment during the second quarter valued at about $34,000. Cetera Investment Advisers lifted its stake in Cherry Hill Mortgage Investment by 50.9% during the fourth quarter. Cetera Investment Advisers now owns 37,054 shares of the real estate investment trust's stock valued at $94,000 after buying an additional 12,504 shares in the last quarter. Finally, State Street Corp lifted its stake in Cherry Hill Mortgage Investment by 11.3% during the fourth quarter. State Street Corp now owns 150,191 shares of the real estate investment trust's stock valued at $398,000 after buying an additional 15,300 shares in the last quarter. 18.49% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on CHMI shares. Citizens Jmp increased their target price on shares of Cherry Hill Mortgage Investment from $2.75 to $3.00 and gave the company a "market outperform" rating in a research report on Thursday, January 22nd. Weiss Ratings reiterated a "sell (d)" rating on shares of Cherry Hill Mortgage Investment in a research report on Friday, March 27th. Credit Suisse Group set a $3.00 target price on shares of Cherry Hill Mortgage Investment in a research report on Thursday, January 22nd. Finally, Citigroup reissued an "outperform" rating on shares of Cherry Hill Mortgage Investment in a report on Thursday, January 22nd. Two research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $3.00.

Cherry Hill Mortgage Investment Company Profile

Cherry Hill Mortgage Investment Corporation is a real estate investment trust that focuses on acquiring, financing and managing residential mortgage loans and mortgage-related securities. The company's portfolio consists primarily of agency and non-agency residential mortgage loans secured by single-family residences, together with mortgage-backed securities issued or guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.

CHMI employs active portfolio management strategies intended to generate current income and total return for its shareholders.

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