Vanguard Group Inc. Reduces Stock Holdings in Chimera Investment Corporation $CIM

Key Points

• Vanguard reduced its stake in Chimera Investment by 3.7% in Q3, selling 289,819 shares and leaving it with 7,443,393 shares (about 9.18% ownership) valued at roughly $98.4 million.
• Chimera raised its quarterly dividend to $0.45 (annualized $1.80), implying a 13.0% yield with an ex-dividend date of March 31 and a payout ratio of 84.57%.
• The REIT beat quarterly EPS estimates ($0.53 vs. $0.50) but missed revenue forecasts, and the stock trades around $13.80 with a P/E of 7.89 and a consensus analyst target of $14.50 (mostly Hold ratings).

Vanguard Group Inc. cut its holdings in Chimera Investment Corporation (NYSE:CIM - Free Report) by 3.7% in the third quarter, according to the company in its most recent disclosure with the SEC. The fund owned 7,443,393 shares of the real estate investment trust's stock after selling 289,819 shares during the quarter. Vanguard Group Inc. owned about 9.18% of Chimera Investment worth $98,402,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the business. Allianz Asset Management GmbH increased its holdings in shares of Chimera Investment by 21.7% during the third quarter. Allianz Asset Management GmbH now owns 1,671,318 shares of the real estate investment trust's stock valued at $22,095,000 after acquiring an additional 297,709 shares in the last quarter. LSV Asset Management grew its position in Chimera Investment by 7.3% during the 2nd quarter. LSV Asset Management now owns 1,523,435 shares of the real estate investment trust's stock worth $21,130,000 after purchasing an additional 103,900 shares during the last quarter. Norges Bank purchased a new stake in Chimera Investment during the 2nd quarter worth approximately $1,188,000. JPMorgan Chase & Co. increased its stake in Chimera Investment by 42.6% during the 2nd quarter. JPMorgan Chase & Co. now owns 246,471 shares of the real estate investment trust's stock valued at $3,419,000 after purchasing an additional 73,634 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Chimera Investment by 8.6% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 916,858 shares of the real estate investment trust's stock worth $12,717,000 after buying an additional 72,268 shares during the last quarter. Institutional investors and hedge funds own 48.44% of the company's stock.

Chimera Investment Stock Up 0.1%

Chimera Investment stock opened at $13.80 on Friday. Chimera Investment Corporation has a 52 week low of $9.85 and a 52 week high of $14.88. The firm has a market cap of $1.15 billion, a price-to-earnings ratio of 7.89 and a beta of 1.80. The business's 50-day moving average price is $13.04 and its 200 day moving average price is $13.11. The company has a quick ratio of 0.06, a current ratio of 0.06 and a debt-to-equity ratio of 2.71.

Chimera Investment (NYSE:CIM - Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The real estate investment trust reported $0.53 EPS for the quarter, topping the consensus estimate of $0.50 by $0.03. The business had revenue of $72.01 million for the quarter, compared to analyst estimates of $80.77 million. Chimera Investment had a return on equity of 8.73% and a net margin of 28.06%. As a group, sell-side analysts anticipate that Chimera Investment Corporation will post 1.57 earnings per share for the current year.

Chimera Investment Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Tuesday, March 31st will be given a dividend of $0.45 per share. This is a boost from Chimera Investment's previous quarterly dividend of $0.37. This represents a $1.80 annualized dividend and a yield of 13.0%. The ex-dividend date is Tuesday, March 31st. Chimera Investment's dividend payout ratio (DPR) is 84.57%.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the stock. Royal Bank Of Canada lowered shares of Chimera Investment from an "outperform" rating to a "sector perform" rating and set a $13.00 price objective on the stock. in a report on Tuesday, December 9th. UBS Group dropped their price target on Chimera Investment from $16.00 to $15.50 and set a "buy" rating on the stock in a research note on Tuesday, November 18th. Weiss Ratings raised Chimera Investment from a "sell (d)" rating to a "hold (c-)" rating in a report on Friday, February 20th. Finally, Wall Street Zen lowered Chimera Investment from a "hold" rating to a "sell" rating in a research report on Saturday, February 21st. One research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $14.50.

Chimera Investment 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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