Cherry Hill Mortgage Investment (NYSE:CHMI) Stock Passes Below Two Hundred Day Moving Average Following Weak Earnings

Key Points

• Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) stock has fallen below its 200-day moving average of $3.06 following a miss in quarterly earnings, reporting $0.10 EPS against the expected $0.13.
• The company recently declared a quarterly dividend of $0.15 per share, resulting in an annualized dividend of $0.60, which reflects a high dividend yield of 21.4%, despite a negative dividend payout ratio of -109.09%.
• Institutional investors have increased their holdings in Cherry Hill, with ownership now at 18.49% of shares, highlighting growing interest from hedge funds and other investment firms.

Shares of Cherry Hill Mortgage Investment Corporation (NYSE:CHMI - Get Free Report) crossed below its 200-day moving average during trading on Thursday after the company announced weaker than expected quarterly earnings. The stock has a 200-day moving average of $3.06 and traded as low as $2.78. Cherry Hill Mortgage Investment shares last traded at $2.81, with a volume of 203,752 shares changing hands.

The real estate investment trust reported $0.10 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.12 by ($0.02). Cherry Hill Mortgage Investment had a positive return on equity of 15.55% and a negative net margin of 14.28%. The firm had revenue of $6.04 million for the quarter, compared to the consensus estimate of $2.19 million.

Cherry Hill Mortgage Investment Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Monday, June 30th were paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 21.1%. The ex-dividend date was Monday, June 30th. Cherry Hill Mortgage Investment's dividend payout ratio (DPR) is presently -115.38%.

Institutional Investors Weigh In On Cherry Hill Mortgage Investment

A number of hedge funds have recently added to or reduced their stakes in the stock. Jane Street Group LLC bought a new stake in shares of Cherry Hill Mortgage Investment during the fourth quarter valued at about $68,000. Northern Trust Corp increased its stake in Cherry Hill Mortgage Investment by 30.9% in the 4th quarter. Northern Trust Corp now owns 128,350 shares of the real estate investment trust's stock worth $339,000 after purchasing an additional 30,330 shares in the last quarter. Envestnet Asset Management Inc. purchased a new position in Cherry Hill Mortgage Investment in the 2nd quarter worth about $45,000. Ritholtz Wealth Management purchased a new position in Cherry Hill Mortgage Investment in the 2nd quarter worth about $66,000. Finally, Vident Advisory LLC purchased a new position in Cherry Hill Mortgage Investment in the 1st quarter worth about $123,000. 18.49% of the stock is currently owned by institutional investors.

Cherry Hill Mortgage Investment Trading Down 0.2%

The stock has a market capitalization of $92.91 million, a price-to-earnings ratio of -5.47 and a beta of 0.97. The stock has a 50-day simple moving average of $2.83 and a 200 day simple moving average of $3.06.

Cherry Hill Mortgage Investment Company Profile

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.