Chimera Investment (NYSE:CIM) Sets New 52-Week Low After Earnings Miss

Key Points

• Chimera Investment shares hit a new 52-week low, falling to $11.64 after the company reported quarterly EPS of $0.46, below the $0.54 consensus estimate. Revenue of $94.77 million also slightly missed expectations.
• The company declared a quarterly dividend of $0.45 per share, equivalent to $1.80 annually and a 15.6% yield; its payout ratio currently stands at -225%.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and a $14.75 price target. Institutional investors own approximately 48.44% of the company’s stock.

Chimera Investment Corporation (NYSE:CIM - Get Free Report) shares reached a new 52-week low during trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $11.64 and last traded at $11.68, with a volume of 340577 shares trading hands. The stock had previously closed at $12.66.

The real estate investment trust reported $0.46 EPS for the quarter, missing the consensus estimate of $0.54 by ($0.08). The firm had revenue of $94.77 million during the quarter, compared to the consensus estimate of $95.30 million. Chimera Investment had a net margin of 2.27% and a return on equity of 9.36%.

Chimera Investment Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, June 30th were paid a dividend of $0.45 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $1.80 annualized dividend and a yield of 15.6%. Chimera Investment's dividend payout ratio (DPR) is currently -225.00%.

Wall Street Analyst Weigh In

Several analysts have weighed in on CIM shares. Wall Street Zen raised Chimera Investment from a "sell" rating to a "hold" rating in a report on Sunday, June 28th. Royal Bank Of Canada reissued a "sector perform" rating and set a $14.00 price objective on shares of Chimera Investment in a report on Wednesday, June 3rd. Finally, Weiss Ratings cut shares of Chimera Investment from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $14.75.

Institutional Investors Weigh In On Chimera Investment

A number of large investors have recently added to or reduced their stakes in the company. IFP Advisors Inc boosted its holdings in shares of Chimera Investment by 1,211.4% in the 4th quarter. IFP Advisors Inc now owns 6,216 shares of the real estate investment trust's stock worth $77,000 after purchasing an additional 5,742 shares in the last quarter. Tower Research Capital LLC TRC raised its holdings in shares of Chimera Investment by 92.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,140 shares of the real estate investment trust's stock valued at $99,000 after buying an additional 3,423 shares in the last quarter. Kestra Advisory Services LLC purchased a new position in shares of Chimera Investment during the 4th quarter valued at about $105,000. BNP Paribas Financial Markets lifted its position in Chimera Investment by 59.2% in the 2nd quarter. BNP Paribas Financial Markets now owns 7,686 shares of the real estate investment trust's stock worth $107,000 after buying an additional 2,857 shares during the last quarter. Finally, Landscape Capital Management L.L.C. bought a new stake in Chimera Investment in the 4th quarter worth approximately $129,000. Hedge funds and other institutional investors own 48.44% of the company's stock.

Chimera Investment Stock Performance

The firm has a market cap of $965.32 million, a PE ratio of -14.42 and a beta of 1.67. The company has a 50 day simple moving average of $13.11 and a 200-day simple moving average of $13.17. The company has a debt-to-equity ratio of 2.31, a current ratio of 0.08 and a quick ratio of 0.08.

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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