Chimera Investment (NYSE:CIM) Sets New 1-Year Low After Earnings Miss

Key Points

• Chimera Investment shares hit a new 52-week low, falling to $7.90 after closing previously at $8.68, following a quarterly earnings miss.
• The REIT reported earnings of $0.38 per share, below analysts’ $0.45 estimate by $0.07.
• Chimera paid a quarterly dividend of $0.45, equivalent to an annualized yield of 21.8%; analysts’ consensus rating was Hold, with a $14.50 average price target.

Chimera Investment Corporation (NYSE:CIM - Get Free Report) shares reached a new 52-week low on Thursday following a weaker than expected earnings announcement. The company traded as low as $7.90 and last traded at $8.2070, with a volume of 78,925 shares changing hands. The stock had previously closed at $8.68.

The real estate investment trust reported $0.38 earnings per share for the quarter, missing analysts' consensus estimates of $0.45 by ($0.07). Chimera Investment had a return on equity of 9.82% and a net margin of 0.14%.

Chimera Investment Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, October 30th. Stockholders of record on Wednesday, September 30th were issued a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a dividend yield of 21.8%. The ex-dividend date was Wednesday, September 30th. Chimera Investment's payout ratio is -176.47%.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Weiss Ratings cut Chimera Investment from a "sell (d+)" rating to a "sell (d)" rating in a report on Friday, September 18th. Keefe, Bruyette & Woods lowered their price objective 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. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Chimera Investment currently has an average rating of "Hold" and a consensus price target of $14.50.

Hedge Funds Weigh In On Chimera Investment

A number of hedge funds have recently modified their holdings of CIM. BlackRock Inc. lifted its holdings in Chimera Investment by 9.5% in the second quarter. BlackRock Inc. now owns 7,855,125 shares of the real estate investment trust's stock valued at $104,787,000 after acquiring an additional 681,996 shares during the period. Thornburg Investment Management Inc. lifted its holdings in shares of Chimera Investment by 0.7% in the 2nd quarter. Thornburg Investment Management Inc. now owns 5,511,923 shares of the real estate investment trust's stock worth $73,529,000 after buying an additional 35,621 shares during the period. Allianz Asset Management GmbH lifted its position in shares of Chimera Investment by 6.9% in the 2nd quarter. Allianz Asset Management GmbH now owns 2,274,507 shares of the real estate investment trust's stock worth $30,342,000 after purchasing an additional 147,119 shares during the period. State Street Corp increased its holdings in shares of Chimera Investment by 7.8% in the 2nd quarter. State Street Corp now owns 2,029,275 shares of the real estate investment trust's stock valued at $27,957,000 after acquiring an additional 147,629 shares during the period. Finally, First Trust Advisors LP raised its holdings in Chimera Investment by 82.0% in the first quarter. First Trust Advisors LP now owns 543,101 shares of the real estate investment trust's stock worth $6,816,000 after purchasing an additional 244,763 shares in the last quarter. 48.44% of the stock is currently owned by institutional investors.

Chimera Investment Trading Down 5.0%

The company's 50 day simple moving average is $9.84 and its two-hundred day simple moving average is $12.23. The company has a quick ratio of 0.07, a current ratio of 0.07 and a debt-to-equity ratio of 2.34. The company has a market capitalization of $690.61 million, a price-to-earnings ratio of -8.22 and a beta of 1.75.

Chimera Investment Company Profile

Chimera Investment Corporation NYSE: CIM is a real estate investment trust that invests primarily in residential mortgage assets and other real estate-related investments. The company seeks to generate income from a portfolio that may include residential mortgage loans, agency and non-agency residential mortgage-backed securities, and other mortgage-related assets.

Chimera's investments can include whole residential mortgage loans and securitized interests backed by mortgages. Its portfolio has historically included both agency assets, which carry guarantees from government-sponsored entities or government agencies, and non-agency assets, which generally involve greater credit exposure.

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