Chimera Investment (NYSE:CIM) Downgraded by Wall Street Zen to Sell

Key Points

• Chimera Investment has been downgraded by Wall Street Zen from a "hold" to a "sell" rating, reflecting analyst concerns about its performance.
• Several brokerages are adjusting their price targets for the stock, with Keefe, Bruyette & Woods lowering their target from $16.50 to $15.00, while UBS Group raised theirs from $15.00 to $16.00.
• The company reported earnings of $0.39 per share for its most recent quarter, falling short of analyst expectations of $0.46, with revenues also underperforming at $66.01 million compared to estimates of $83.89 million.

Wall Street Zen cut shares of Chimera Investment (NYSE:CIM - Free Report) from a hold rating to a sell rating in a report issued on Saturday.

CIM has been the topic of several other research reports. UBS Group upped their price objective on shares of Chimera Investment from $15.00 to $16.00 and gave the company a "buy" rating in a research note on Thursday, July 10th. Keefe, Bruyette & Woods dropped their price target on shares of Chimera Investment from $16.50 to $15.00 and set a "market perform" rating on the stock in a research note on Thursday, July 10th. One analyst has rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $15.50.

Chimera Investment Stock Up 1.1%

Chimera Investment stock traded up $0.15 during trading hours on Friday, hitting $13.67. The company had a trading volume of 118,627 shares, compared to its average volume of 575,180. The firm has a market capitalization of $1.11 billion, a P/E ratio of 10.85 and a beta of 1.79. The company has a debt-to-equity ratio of 4.47, a current ratio of 4.14 and a quick ratio of 4.14. The firm's fifty day moving average is $13.84 and its 200-day moving average is $13.38. Chimera Investment has a fifty-two week low of $9.85 and a fifty-two week high of $16.89.

Chimera Investment (NYSE:CIM - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The real estate investment trust reported $0.39 earnings per share for the quarter, missing the consensus estimate of $0.46 by ($0.07). The company had revenue of $66.01 million during the quarter, compared to analyst estimates of $83.89 million. Chimera Investment had a net margin of 21.93% and a return on equity of 7.28%. On average, research analysts forecast that Chimera Investment will post 1.57 earnings per share for the current year.

Chimera Investment Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Monday, June 30th were paid a dividend of $0.37 per share. The ex-dividend date was Monday, June 30th. This represents a $1.48 annualized dividend and a dividend yield of 10.8%. Chimera Investment's dividend payout ratio is 117.46%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. JPMorgan Chase & Co. boosted its holdings in shares of Chimera Investment by 84.7% during the 4th quarter. JPMorgan Chase & Co. now owns 309,935 shares of the real estate investment trust's stock worth $4,339,000 after buying an additional 142,105 shares during the period. Wells Fargo & Company MN boosted its holdings in shares of Chimera Investment by 7.6% during the 4th quarter. Wells Fargo & Company MN now owns 117,258 shares of the real estate investment trust's stock worth $1,642,000 after buying an additional 8,282 shares during the period. Dynamic Technology Lab Private Ltd bought a new stake in shares of Chimera Investment during the 4th quarter worth $170,000. Invesco Ltd. boosted its holdings in shares of Chimera Investment by 7.1% during the 4th quarter. Invesco Ltd. now owns 115,228 shares of the real estate investment trust's stock worth $1,613,000 after buying an additional 7,604 shares during the period. Finally, Raymond James Financial Inc. bought a new stake in shares of Chimera Investment during the 4th quarter worth $649,000. Institutional investors and hedge funds own 48.44% of the company's stock.

About Chimera Investment

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, business purpose and investor loans, and other real estate related securities.