Cherry Hill Mortgage Investment (NYSE:CHMI) Shares Break Below Two Hundred Day Moving Average - What's Next?

Key Points

• CHMI shares fell below their 200-day moving average of $2.57, trading as low as $2.56 and recently changing hands at $2.5850.
• Analyst sentiment weakened, with multiple firms downgrading the stock; the consensus rating is Hold with an average price target of $3.00.
• Cherry Hill declared a quarterly dividend of $0.10 per share, equivalent to a $0.40 annualized payout and a 15.5% yield, though its 222.22% payout ratio exceeds reported earnings.

Cherry Hill Mortgage Investment Corporation (NYSE:CHMI - Get Free Report) passed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $2.57 and traded as low as $2.56. Cherry Hill Mortgage Investment shares last traded at $2.5850, with a volume of 118,256 shares.

Wall Street Analysts Forecast Growth

Several research firms have commented on CHMI. Wall Street Zen downgraded Cherry Hill Mortgage Investment from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 1st. B. Riley Financial downgraded Cherry Hill Mortgage Investment from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 10th. Citizens Jmp downgraded Cherry Hill Mortgage Investment from a "market outperform" rating to a "hold" rating in a research note on Tuesday, August 11th. Finally, Weiss Ratings lowered Cherry Hill Mortgage Investment from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, October 2nd. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $3.00.

Cherry Hill Mortgage Investment Price Performance

The stock has a market cap of $95.51 million, a price-to-earnings ratio of 14.36 and a beta of 1.01. The company's 50 day moving average is $2.79 and its 200 day moving average is $2.57.

Cherry Hill Mortgage Investment (NYSE:CHMI - Get Free Report) last issued its earnings results on Monday, August 10th. The real estate investment trust reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.13 by $0.02. Cherry Hill Mortgage Investment had a net margin of 26.43% and a return on equity of 21.74%. The company had revenue of $7.88 million for the quarter, compared to analyst estimates of $10.75 million. Sell-side analysts predict that Cherry Hill Mortgage Investment Corporation will post 0.59 earnings per share for the current year.

Cherry Hill Mortgage Investment Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Wednesday, September 30th will be given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 15.5%. The ex-dividend date is Wednesday, September 30th. Cherry Hill Mortgage Investment's dividend payout ratio (DPR) is presently 222.22%.

Institutional Investors Weigh In On Cherry Hill Mortgage Investment

Several institutional investors have recently modified their holdings of CHMI. BlackRock Inc. purchased a new position in Cherry Hill Mortgage Investment in the 2nd quarter valued at approximately $1,104,000. Corient Private Wealth LP purchased a new stake in Cherry Hill Mortgage Investment during the second quarter worth $397,000. Money Concepts Capital Corp purchased a new stake in Cherry Hill Mortgage Investment during the first quarter worth $68,000. Gables Capital Management Inc. purchased a new stake in Cherry Hill Mortgage Investment during the second quarter worth $46,000. Finally, Glenview Trust Co purchased a new stake in Cherry Hill Mortgage Investment during the second quarter worth $29,000. Hedge funds and other institutional investors own 18.49% of the company's stock.

About Cherry Hill Mortgage Investment

Cherry Hill Mortgage Investment Corporation NYSE: CHMI is a real estate investment trust that invests in residential mortgage-related assets. The company primarily focuses on generating income from portfolios of mortgage assets tied to the U.S. residential housing market.

Its investments have included agency mortgage-backed securities, which are issued or guaranteed by U.S. government-sponsored entities, as well as mortgage servicing rights and excess mortgage servicing rights. These assets can provide income from interest payments and servicing-related cash flows.

Cherry Hill Mortgage Investment Corporation was founded in 2012 and is externally managed by Cherry Hill Mortgage Management, LLC.

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