Cherry Hill Mortgage Investment (NYSE:CHMI) Stock Price Breaks Below 200 Day Moving Average - Should You Sell?

Key Points

• Cherry Hill Mortgage Investment shares fell below their 200-day moving average, trading as low as $2.51 versus the $2.57 average, signaling potential technical weakness.
• Analyst sentiment has deteriorated, with recent rating cuts leaving CHMI with an overall “Hold” consensus and a $3.00 average price target.
• The company reported quarterly earnings of $0.15 per share, above estimates, but revenue missed expectations. Its $0.10 quarterly dividend implies a high 15.6% yield, while the 222.22% payout ratio raises questions about dividend sustainability.

Cherry Hill Mortgage Investment Corporation (NYSE:CHMI - Get Free Report)'s share price crossed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $2.57 and traded as low as $2.51. Cherry Hill Mortgage Investment shares last traded at $2.5650, with a volume of 91,245 shares.

Wall Street Analyst Weigh In

A number of research firms have commented on CHMI. Wall Street Zen lowered Cherry Hill Mortgage Investment from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 1st. Weiss Ratings lowered Cherry Hill Mortgage Investment from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, October 2nd. B. Riley Financial cut Cherry Hill Mortgage Investment from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 10th. Finally, Citizens Jmp lowered Cherry Hill Mortgage Investment from a "market outperform" rating to a "hold" rating in a research note on Tuesday, August 11th. One investment 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. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $3.00.

Cherry Hill Mortgage Investment Stock Up 1.0%

The firm has a market cap of $94.78 million, a PE ratio of 14.25 and a beta of 1.01. The firm's fifty day simple moving average is $2.77 and its two-hundred day simple moving average is $2.57.

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

Cherry Hill Mortgage Investment Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Wednesday, September 30th will be given a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 15.6%. The ex-dividend date is Wednesday, September 30th. Cherry Hill Mortgage Investment's payout ratio is presently 222.22%.

Hedge Funds Weigh In On Cherry Hill Mortgage Investment

Hedge funds have recently made changes to their positions in the business. Glenview Trust Co bought a new position in shares of Cherry Hill Mortgage Investment during the second quarter worth $29,000. Gables Capital Management Inc. bought a new position in shares of Cherry Hill Mortgage Investment during the 2nd quarter valued at about $46,000. Money Concepts Capital Corp bought a new stake in shares of Cherry Hill Mortgage Investment in the first quarter worth about $68,000. Corient Private Wealth LP bought a new stake in shares of Cherry Hill Mortgage Investment in the second quarter worth about $397,000. Finally, BlackRock Inc. purchased a new stake in shares of Cherry Hill Mortgage Investment in the second quarter worth about $1,104,000. Institutional investors own 18.49% of the company's stock.

Cherry Hill Mortgage Investment Company Profile

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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