Chimera Investment (NYSE:CIM) Stock Sees Unusually High Call Option Buying

Key Points

• Call-option activity surged: Investors bought 16,003 Chimera Investment call options on Monday, about 1,309% above the average daily volume.
• Shares weakened: CIM fell to $7.24, near its 52-week low of $7.18; its latest quarterly earnings per share of $0.38 missed the $0.45 consensus estimate.
• Analyst view remains cautious: Chimera has a consensus “Hold” rating and a $14.50 average price target. The company declared a $0.45 quarterly dividend, equivalent to a reported 24.9% yield.

Chimera Investment Corporation (NYSE:CIM - Get Free Report) saw unusually large options trading on Monday. Investors acquired 16,003 call options on the stock. This is an increase of approximately 1,309% compared to the average daily volume of 1,136 call options.

Institutional Investors Weigh In On Chimera Investment

A number of institutional investors and hedge funds have recently modified their holdings of CIM. StoneX Group Inc. purchased a new position in shares of Chimera Investment during the third quarter worth about $220,000. International Assets Investment Management LLC increased its position in shares of Chimera Investment by 31.0% in the third quarter. International Assets Investment Management LLC now owns 26,695 shares of the real estate investment trust's stock worth $250,000 after purchasing an additional 6,311 shares during the last quarter. Kestra Advisory Services LLC increased its position in shares of Chimera Investment by 167.6% in the third quarter. Kestra Advisory Services LLC now owns 34,346 shares of the real estate investment trust's stock worth $327,000 after purchasing an additional 21,512 shares during the last quarter. Sigma Planning Corp increased its position in shares of Chimera Investment by 18.9% in the third quarter. Sigma Planning Corp now owns 18,423 shares of the real estate investment trust's stock worth $176,000 after purchasing an additional 2,929 shares during the last quarter. Finally, Simplicity Wealth LLC raised its stake in Chimera Investment by 18.1% in the third quarter. Simplicity Wealth LLC now owns 83,244 shares of the real estate investment trust's stock valued at $793,000 after purchasing an additional 12,762 shares in the last quarter. 48.44% of the stock is owned by hedge funds and other institutional investors.

Chimera Investment Stock Performance

Shares of NYSE:CIM traded down $0.07 during trading on Monday, hitting $7.24. 435,464 shares of the company were exchanged, compared to its average volume of 942,113. The company has a market cap of $605.82 million, a PE ratio of -2.38 and a beta of 1.75. The stock has a 50 day moving average of $9.68 and a 200 day moving average of $12.17. Chimera Investment has a 52-week low of $7.18 and a 52-week high of $14.18. The company has a debt-to-equity ratio of 2.34, a current ratio of 0.07 and a quick ratio of 0.07.

Chimera Investment (NYSE:CIM - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The real estate investment trust reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.45 by ($0.07). The company had revenue of ($118.00) million during the quarter, compared to analysts' expectations of $103.10 million. Chimera Investment had a negative net margin of 19.11% and a positive return on equity of 9.99%.

Chimera Investment Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, October 30th. Stockholders of record on Wednesday, September 30th were given a dividend of $0.45 per share. The ex-dividend date was Wednesday, September 30th. This represents a $1.80 annualized dividend and a dividend yield of 24.9%. Chimera Investment's dividend payout ratio is currently -58.82%.

Wall Street Analysts Forecast Growth

CIM has been the topic of several recent research reports. Keefe, Bruyette & Woods dropped their price objective on shares of Chimera Investment from $15.00 to $14.00 and set a "market perform" rating on the stock in a report on Thursday, August 6th. Weiss Ratings lowered shares of Chimera Investment from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, September 18th. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $14.50.

About Chimera Investment

Chimera Investment Corporation NYSE: CIM is a real estate investment trust that invests primarily in residential mortgage assets and other real estate-related investments. The company seeks to generate income from a portfolio that may include residential mortgage loans, agency and non-agency residential mortgage-backed securities, and other mortgage-related assets.

Chimera's investments can include whole residential mortgage loans and securitized interests backed by mortgages. Its portfolio has historically included both agency assets, which carry guarantees from government-sponsored entities or government agencies, and non-agency assets, which generally involve greater credit exposure.

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