Chimera Investment (NYSE:CIM) Hits New 12-Month Low - Should You Sell?

Key Points

• Chimera Investment fell to a new 52-week low of $10.82, down 3.4%, with the stock trading below both its 50-day and 200-day moving averages.
• Analyst sentiment remains cautious: Chimera has an average “Hold” rating and a $14.50 average price target, while recent firms maintained or lowered their ratings and targets.
• The company missed quarterly earnings expectations, reporting $0.46 per share versus the $0.54 consensus estimate, though it declared a $0.45 quarterly dividend—an annualized yield of approximately 16.7%.

Chimera Investment Corporation (NYSE:CIM - Get Free Report) reached a new 52-week low during trading on Wednesday . The company traded as low as $10.82 and last traded at $10.8450, with a volume of 593789 shares. The stock had previously closed at $11.15.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on CIM. Weiss Ratings lowered shares of Chimera Investment from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday. Wall Street Zen upgraded Chimera Investment from a "sell" rating to a "hold" rating in a research report on Sunday, June 28th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $14.00 price target on shares of Chimera Investment in a research note on Wednesday, June 3rd. Finally, Keefe, Bruyette & Woods decreased their target price on Chimera Investment from $15.00 to $14.00 and set a "market perform" rating for the company in a research report on Thursday, August 6th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Chimera Investment currently has an average rating of "Hold" and an average target price of $14.50.

Chimera Investment Stock Down 3.4%

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 business's fifty day moving average price is $11.86 and its two-hundred day moving average price is $12.77. The stock has a market capitalization of $901.98 million, a PE ratio of -10.57 and a beta of 1.66.

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

Chimera Investment Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Wednesday, September 30th will be given a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 16.7%. The ex-dividend date is Wednesday, September 30th. Chimera Investment's payout ratio is presently -176.47%.

Institutional Investors Weigh In On Chimera Investment

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. State Street Corp raised its position in shares of Chimera Investment by 7.8% in the second quarter. State Street Corp now owns 2,029,275 shares of the real estate investment trust's stock valued at $27,957,000 after buying an additional 147,629 shares during the last quarter. Engineers Gate Manager LP grew its stake in Chimera Investment by 31.1% during the 2nd quarter. Engineers Gate Manager LP now owns 51,834 shares of the real estate investment trust's stock valued at $691,000 after acquiring an additional 12,288 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new stake in Chimera Investment in the 2nd quarter valued at about $46,000. IFP Advisors Inc raised its holdings in Chimera Investment by 52.5% in the 2nd quarter. IFP Advisors Inc now owns 10,412 shares of the real estate investment trust's stock valued at $139,000 after acquiring an additional 3,586 shares during the last quarter. Finally, Nykredit A S acquired a new stake in Chimera Investment in the 2nd quarter valued at about $29,000. Institutional investors and hedge funds own 48.44% of the company's stock.

Chimera Investment Company Profile

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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