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

Key Points

• Chimera Investment shares hit a new 52-week low, trading as low as $8.76 and well below their 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans cautious: the stock has an average “Hold” rating and a $14.50 consensus price target, while one ratings firm maintained a “Sell” view.
• The company missed quarterly earnings expectations, reporting $0.46 per share versus $0.54 anticipated. It declared a $0.45 quarterly dividend, implying a roughly 20.5% yield, but its payout ratio is negative and exceeds reported earnings.

Chimera Investment Corporation (NYSE:CIM - Get Free Report)'s share price reached a new 52-week low during trading on Monday. The stock traded as low as $8.76 and last traded at $8.7250, with a volume of 78,911 shares traded. The stock had previously closed at $8.96.

Analysts Set New Price Targets

Several equities analysts have weighed in on CIM shares. Weiss Ratings lowered Chimera Investment from a "sell (d+)" rating to a "sell (d)" rating in a report on Friday, September 18th. Keefe, Bruyette & Woods decreased their price target on Chimera Investment from $15.00 to $14.00 and set a "market perform" rating for the company in a research note on Thursday, August 6th. Finally, Wall Street Zen raised Chimera Investment from a "sell" rating to a "hold" rating in a report on Sunday, June 28th. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Chimera Investment presently has an average rating of "Hold" and a consensus price target of $14.50.

Chimera Investment Stock Performance

The firm's fifty day moving average price is $11.07 and its 200-day moving average price is $12.44. The company has a market cap of $736.25 million, a P/E ratio of -8.63 and a beta of 1.72. The company has a current ratio of 0.07, a quick ratio of 0.07 and a debt-to-equity ratio of 2.34.

Chimera Investment (NYSE:CIM - Get Free Report) last released its 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 during the quarter, compared to the consensus estimate of $95.30 million.

Chimera Investment Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th will be issued a $0.45 dividend. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $1.80 annualized dividend and a yield of 20.5%. Chimera Investment's dividend payout ratio is -176.47%.

Institutional Trading of Chimera Investment

A number of hedge funds have recently modified their holdings of the company. State Street Corp increased its holdings in 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 buying an additional 147,629 shares during the period. Engineers Gate Manager LP raised its stake in shares of Chimera Investment by 31.1% in 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 buying an additional 12,288 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new position in shares of Chimera Investment in the 2nd quarter valued at $46,000. IFP Advisors Inc raised its stake in shares of 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 buying an additional 3,586 shares in the last quarter. Finally, Nykredit A S bought a new position in shares of Chimera Investment during the 2nd quarter worth about $29,000. Institutional investors own 48.44% of the company's stock.

About Chimera Investment

Chimera Investment Corporation is a real estate investment trust (REIT) focused on investing in residential mortgage assets. The company seeks to generate income primarily through a portfolio of mortgage loans and mortgage-backed securities, including agency and non-agency residential mortgage-backed securities.

Its investments may include performing and non-performing residential mortgage loans, residential mortgage-backed securities and other mortgage-related assets. Agency securities are generally backed by government-sponsored enterprises or U.S.

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