Wall Street Zen Upgrades Cherry Hill Mortgage Investment (NYSE:CHMI) to Buy

Key Points

• Cherry Hill Mortgage Investment has been upgraded from a "hold" rating to a "buy" rating by analysts at Wall Street Zen.
• The company reported earnings of $0.10 per share for the last quarter, which was below analysts' expectations of $0.12, despite a revenue of $6.04 million exceeding estimates.
• Institutional investors collectively hold 18.49% of Cherry Hill Mortgage Investment's stock, with several large investors recently acquiring new positions in the company.

Wall Street Zen upgraded shares of Cherry Hill Mortgage Investment (NYSE:CHMI - Free Report) from a hold rating to a buy rating in a report issued on Saturday morning.

Cherry Hill Mortgage Investment Stock Up 1.8%

Shares of Cherry Hill Mortgage Investment stock traded up $0.05 during trading hours on Friday, hitting $2.58. The company's stock had a trading volume of 182,090 shares, compared to its average volume of 295,362. Cherry Hill Mortgage Investment has a 1-year low of $2.34 and a 1-year high of $3.81. The business has a fifty day moving average of $2.81 and a 200 day moving average of $2.94. The company has a market capitalization of $92.80 million, a PE ratio of -4.95 and a beta of 0.98.

Cherry Hill Mortgage Investment (NYSE:CHMI - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. 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 business had revenue of $6.04 million during the quarter, compared to analyst estimates of $2.19 million. On average, sell-side analysts anticipate 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 declared a quarterly dividend, which will be paid on Friday, October 31st. Stockholders of record on Tuesday, September 30th will be issued a dividend of $0.10 per share. The ex-dividend date is Tuesday, September 30th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 15.5%. Cherry Hill Mortgage Investment's payout ratio is currently -115.38%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Northern Trust Corp grew its position in Cherry Hill Mortgage Investment by 30.9% in the fourth quarter. Northern Trust Corp now owns 128,350 shares of the real estate investment trust's stock worth $339,000 after acquiring an additional 30,330 shares in the last quarter. Jane Street Group LLC bought a new stake in shares of Cherry Hill Mortgage Investment in the 4th quarter worth about $68,000. Banco BTG Pactual S.A. bought a new stake in Cherry Hill Mortgage Investment during the 1st quarter worth about $36,000. Wealth Preservation Advisors LLC bought a new stake in Cherry Hill Mortgage Investment during the 1st quarter worth about $33,000. Finally, Vident Advisory LLC acquired a new stake in Cherry Hill Mortgage Investment during the 1st quarter worth approximately $123,000. 18.49% of the stock is owned by hedge funds and other institutional investors.

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.