Chimera Investment (NYSE:CIM) Shares Cross Above 200-Day Moving Average - Should You Sell?

Key Points

• Chimera Investment shares moved above their 200-day moving average during Wednesday’s trading, signaling a short-term technical improvement. The stock briefly hit $13.18 and last traded around $13.01.
• Analyst sentiment remains mixed, with an average rating of Hold and an average price target of $14.75. Recent calls included RBC’s “sector perform” reaffirmation, Weiss Ratings’ downgrade to sell, and Wall Street Zen’s upgrade to hold.
• The REIT declared a quarterly dividend of $0.45 per share, implying an annualized yield of 13.8%. It also beat EPS estimates in its latest quarterly report, though revenue came in well below expectations.

Chimera Investment Corporation (NYSE:CIM - Get Free Report) shares crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $13.18 and traded as high as $13.18. Chimera Investment shares last traded at $13.0050, with a volume of 736,856 shares.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on CIM shares. Royal Bank Of Canada reissued a "sector perform" rating and set a $14.00 price target on shares of Chimera Investment in a research report on Wednesday, June 3rd. Weiss Ratings cut Chimera Investment from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, May 20th. Finally, Wall Street Zen upgraded Chimera Investment from a "sell" rating to a "hold" rating in a research report on Sunday, June 28th. One investment analyst has rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $14.75.

Chimera Investment Trading Down 0.3%

The company has a market cap of $1.09 billion, a PE ratio of -16.26 and a beta of 1.67. The company's 50 day simple moving average is $13.30 and its two-hundred day simple moving average is $13.18. 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 (NYSE:CIM - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The real estate investment trust reported $0.54 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.52 by $0.02. Chimera Investment had a net margin of 2.27% and a return on equity of 9.36%. The business had revenue of $32.37 million for the quarter, compared to the consensus estimate of $102.35 million.

Chimera Investment Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Tuesday, June 30th will be issued a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 13.8%. The ex-dividend date is Tuesday, June 30th. Chimera Investment's dividend payout ratio (DPR) is -225.00%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in CIM. Harbour Investments Inc. increased its stake in Chimera Investment by 1.5% in the fourth quarter. Harbour Investments Inc. now owns 68,905 shares of the real estate investment trust's stock valued at $856,000 after purchasing an additional 994 shares during the last quarter. Cetera Investment Advisers lifted its position in shares of Chimera Investment by 6.1% during the 2nd quarter. Cetera Investment Advisers now owns 19,926 shares of the real estate investment trust's stock worth $276,000 after buying an additional 1,143 shares during the last quarter. ProShare Advisors LLC lifted its position in shares of Chimera Investment by 9.8% during the 4th quarter. ProShare Advisors LLC now owns 14,952 shares of the real estate investment trust's stock worth $186,000 after buying an additional 1,335 shares during the last quarter. Intech Investment Management LLC boosted its holdings in shares of Chimera Investment by 4.5% in the 3rd quarter. Intech Investment Management LLC now owns 33,098 shares of the real estate investment trust's stock valued at $438,000 after buying an additional 1,421 shares in the last quarter. Finally, Mitsubishi UFJ Trust & Banking Corp boosted its holdings in shares of Chimera Investment by 1.5% in the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 134,688 shares of the real estate investment trust's stock valued at $1,674,000 after buying an additional 1,930 shares in the last quarter. 48.44% of the stock is currently owned by institutional investors and hedge funds.

About Chimera Investment

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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