Chimera Investment (NYSE:CIM) Reaches New 12-Month Low - Time to Sell?

Key Points

• Chimera Investment hit a new 52-week low, trading as low as $6.89; its 50- and 200-day moving averages were $9.51 and $12.12, respectively.
• Analyst views are mixed: MarketBeat reported an average rating of Hold and a $13.67 consensus price target, while Keefe, Bruyette & Woods cut its target to $11.50.
• The REIT reported quarterly EPS of $0.38, below the $0.45 consensus estimate, and had paid a $0.45 quarterly dividend—an indicated annualized yield of 26.3% at the article’s stated share price.

Chimera Investment Corporation (NYSE:CIM - Get Free Report)'s stock price reached a new 52-week low during trading on Wednesday. The company traded as low as $6.89 and last traded at $6.9360, with a volume of 140,352 shares trading hands. The stock had previously closed at $6.99.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on CIM shares. Weiss Ratings cut shares of Chimera Investment from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, September 18th. Keefe, Bruyette & Woods lowered their target price on shares of Chimera Investment from $13.00 to $11.50 and set a "market perform" rating for the company in a research note on Monday. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $13.67.

Chimera Investment Stock Performance

The stock has a market capitalization of $572.99 million, a price-to-earnings ratio of -2.24 and a beta of 1.75. The company has a 50 day simple moving average of $9.51 and a 200-day simple moving average of $12.12. The company has a quick ratio of 0.07, a current ratio of 0.05 and a debt-to-equity ratio of 2.46.

Chimera Investment (NYSE:CIM - Get Free Report) last announced its quarterly earnings data on Thursday, November 5th. The real estate investment trust reported $0.38 EPS for the quarter, missing the consensus estimate of $0.45 by ($0.07). Chimera Investment had a positive return on equity of 10.31% and a negative net margin of 19.11%. The company had revenue of ($118.00) million for the quarter, compared to analyst estimates of $103.10 million.

Chimera Investment Announces Dividend

The business also recently disclosed 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. This represents a $1.80 dividend on an annualized basis and a dividend yield of 26.3%. The ex-dividend date of this dividend was Wednesday, September 30th. Chimera Investment's dividend payout ratio is -58.82%.

Institutional Trading of Chimera Investment

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Nykredit A S bought a new position in Chimera Investment in the second quarter worth approximately $29,000. Sigma Planning Corp increased its holdings in shares of Chimera Investment by 18.9% during the third quarter. Sigma Planning Corp now owns 18,423 shares of the real estate investment trust's stock valued at $176,000 after acquiring an additional 2,929 shares in the last quarter. Kennicott Capital Management LLC increased its holdings in shares of Chimera Investment by 9.0% during the third quarter. Kennicott Capital Management LLC now owns 35,616 shares of the real estate investment trust's stock valued at $339,000 after acquiring an additional 2,943 shares in the last quarter. Integrated Wealth Concepts LLC bought a new stake in shares of Chimera Investment during the second quarter valued at approximately $46,000. Finally, IFP Advisors Inc raised its position in shares of Chimera Investment by 52.5% during the second quarter. IFP Advisors Inc now owns 10,412 shares of the real estate investment trust's stock worth $139,000 after purchasing an additional 3,586 shares during the period. 48.44% of the stock is owned by institutional investors.

Chimera Investment Company Profile

Chimera Investment Corporation is a real estate investment trust (REIT) focused on residential mortgage-related assets. Its investments include residential mortgage loans and residential mortgage-backed securities, as well as commercial mortgage loans and other real estate-related assets. The company seeks to generate income from these assets and may hold them directly or through securitized investments. Its activities are tied primarily to the U.S. mortgage and housing markets. Founded in 2007, Chimera is headquartered in New York.

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