Chimera Investment (NYSE:CIM) Hits New 1-Year Low - Should You Sell?

Key Points

• Chimera Investment shares hit a new 52-week low, trading as low as $10.05 and declining 1.6%, below both its 50-day and 200-day moving averages.
• Analysts have a consensus “Hold” rating with an average price target of $14.50, although one analyst rates the stock Buy and another rates it Sell.
• The company missed quarterly earnings expectations, reporting $0.46 in EPS versus $0.54 expected, but declared a $0.45 quarterly dividend, equivalent to a highly elevated 17.7% annualized yield.

Chimera Investment Corporation (NYSE:CIM - Get Free Report) shares hit a new 52-week low on Tuesday. The stock traded as low as $10.05 and last traded at $10.1740, with a volume of 1543940 shares changing hands. The stock had previously closed at $10.34.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on CIM shares. Keefe, Bruyette & Woods lowered their price target 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 report on Friday, September 18th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $14.00 target price on shares of Chimera Investment in a report on Wednesday, June 3rd. Finally, Wall Street Zen upgraded shares of Chimera Investment from a "sell" rating to a "hold" rating in a research note on Sunday, June 28th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $14.50.

Chimera Investment Trading Down 1.6%

The stock has a 50 day moving average of $11.66 and a 200 day moving average of $12.68. The company has a debt-to-equity ratio of 2.34, a current ratio of 0.07 and a quick ratio of 0.07. The firm has a market cap of $851.67 million, a P/E ratio of -9.97 and a beta of 1.66.

Chimera Investment (NYSE:CIM - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The real estate investment trust reported $0.46 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.08). The firm had revenue of $94.77 million for the quarter, compared to the consensus estimate of $95.30 million. Chimera Investment had a return on equity of 9.82% and a net margin of 0.14%.

Chimera Investment Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th will be given a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a yield of 17.7%. The ex-dividend date is Wednesday, September 30th. Chimera Investment's dividend payout ratio (DPR) is presently -176.47%.

Institutional Investors Weigh In On Chimera Investment

Hedge funds have recently made changes to their positions in the business. ProShare Advisors LLC lifted its holdings in Chimera Investment by 9.8% during the fourth quarter. ProShare Advisors LLC now owns 14,952 shares of the real estate investment trust's stock worth $186,000 after buying an additional 1,335 shares during the period. Nykredit A S purchased a new position in Chimera Investment during the 2nd quarter worth approximately $29,000. Motiv8 Investments LLC boosted its holdings in shares of Chimera Investment by 24.2% in the 4th quarter. Motiv8 Investments LLC now owns 14,407 shares of the real estate investment trust's stock valued at $179,000 after acquiring an additional 2,809 shares during the last quarter. Integrated Wealth Concepts LLC acquired a new position in Chimera Investment during the second quarter valued at $46,000. Finally, IFP Advisors Inc boosted its holdings in Chimera Investment by 52.5% in the second quarter. IFP Advisors Inc now owns 10,412 shares of the real estate investment trust's stock valued at $139,000 after purchasing an additional 3,586 shares during the last quarter. 48.44% of the stock is currently owned by institutional investors.

About Chimera Investment

Chimera Investment Corporation is a real estate investment trust that invests in residential mortgage assets. The company's portfolio has historically included residential mortgage-backed securities, residential mortgage loans and other mortgage-related investments, including both agency and non-agency assets.

Chimera seeks to generate income from the interest and cash flows associated with its investments. Its activities are primarily focused on the U.S. residential housing and mortgage markets, and the company may invest in assets with different levels of credit and prepayment risk.

Founded in 2007, Chimera is externally managed and has operated as a mortgage-focused REIT.

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