Chimera Investment (NYSE:CIM) Releases Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Chimera Investment reported quarterly EPS of $0.54, beating analyst expectations by $0.02, but revenue came in well below estimates at $32.37 million versus $102.35 million expected.
• Management said HomeXpress origination rose 39% year over year to $884 million, while securitization and loan sales released about $195 million of capital that could be redeployed into higher-earning assets.
• The company’s Earnings Available for Distribution covered the $0.45 dividend by about 1.2x, supporting the recently increased quarterly payout of $0.45 per share.

Chimera Investment (NYSE:CIM - Get Free Report) posted its quarterly earnings data on Thursday. The real estate investment trust reported $0.54 EPS for the quarter, topping the consensus estimate of $0.52 by $0.02, FiscalAI reports. Chimera Investment had a net margin of 2.27% and a return on equity of 9.24%. The firm had revenue of $32.37 million during the quarter, compared to analyst estimates of $102.35 million.

Here are the key takeaways from Chimera Investment's conference call:

• HomeXpress origination grew 39% YoY to $884 million with EBITDA of $11.4 million (annualized ROE 16.8%), supported by increased warehouse capacity and tech/AI efficiency gains.
• Management redeemed eight securitizations, sold $1.2 billion of loans and released ~$195 million of capital that was redeployed into Agency RMBS, which management estimates could add roughly $15 million of annual earnings.
• First-quarter earnings available for distribution were $0.54 per share, covering the $0.45 dividend by ~1.2x and continuing a multi-quarter track record of EAD coverage while the dividend has been raised 36% over the past 10 quarters.
• GAAP results showed a net loss of about $65 million and GAAP book value per share fell 6.9% to $18.34 (management says ~two‑thirds of the decline was from securitization call mechanics and excluding that the decline was ~2.5%).
• Liquidity and positioning: the company reports several hundred million in cash/unencumbered assets, total leverage of 5.2x (recourse 2.9x), a larger Agency RMBS sleeve (21%), continued hedging/TBA activity, and plans to launch a HomeX securitization program later this year.

Chimera Investment Stock Performance

NYSE:CIM traded up $0.11 during mid-day trading on Friday, hitting $13.65. The company's stock had a trading volume of 778,597 shares, compared to its average volume of 632,296. The business's fifty day moving average is $13.28 and its two-hundred day moving average is $12.95. The stock has a market cap of $1.14 billion, a price-to-earnings ratio of -17.06 and a beta of 1.71. The company has a debt-to-equity ratio of 2.71, a current ratio of 0.06 and a quick ratio of 0.06. Chimera Investment has a 1 year low of $11.67 and a 1 year high of $14.88.

Chimera Investment Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, April 30th. Shareholders of record on Tuesday, March 31st were paid a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a yield of 13.2%. The ex-dividend date was Tuesday, March 31st. This is a boost from Chimera Investment's previous quarterly dividend of $0.37. Chimera Investment's dividend payout ratio (DPR) is presently -225.00%.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on CIM. Wall Street Zen lowered shares of Chimera Investment from a "hold" rating to a "sell" rating in a report on Saturday, February 21st. Weiss Ratings raised Chimera Investment from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, Chimera Investment currently has a consensus rating of "Hold" and an average price target of $14.50.

Institutional Trading of Chimera Investment

A number of hedge funds have recently modified their holdings of CIM. Millennium Management LLC raised its position in Chimera Investment by 65.8% during the fourth quarter. Millennium Management LLC now owns 697,620 shares of the real estate investment trust's stock valued at $8,671,000 after acquiring an additional 276,950 shares in the last quarter. Two Sigma Investments LP grew its stake in shares of Chimera Investment by 88.7% during the 3rd quarter. Two Sigma Investments LP now owns 574,456 shares of the real estate investment trust's stock worth $7,594,000 after purchasing an additional 270,034 shares during the period. Qube Research & Technologies Ltd increased its holdings in shares of Chimera Investment by 214.9% during the 3rd quarter. Qube Research & Technologies Ltd now owns 206,430 shares of the real estate investment trust's stock valued at $2,729,000 after purchasing an additional 140,874 shares in the last quarter. Van ECK Associates Corp increased its holdings in shares of Chimera Investment by 20.1% during the 4th quarter. Van ECK Associates Corp now owns 816,748 shares of the real estate investment trust's stock valued at $10,152,000 after purchasing an additional 136,423 shares in the last quarter. Finally, Mariner Investment Group LLC acquired a new position in shares of Chimera Investment in the 3rd quarter valued at $1,520,000. Hedge funds and other institutional investors own 48.44% of the company's stock.

Chimera Investment Company Profile

Chimera Investment Corporation NYSE: CIM is a publicly traded real estate investment trust that specializes in investing in residential mortgage assets. The company's portfolio primarily consists of agency and non-agency residential mortgage-backed securities, whole loan residential mortgages and other mortgage-related assets. As a REIT, Chimera Investment aims to generate attractive risk-adjusted returns through its focus on high-quality collateral and disciplined risk management.

The firm's core business activities include identifying and acquiring portfolios of residential mortgage loans and securities from financial institutions and in the secondary market.

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