Chimera Investment (NYSE:CIM) Sets New 12-Month Low - Here's What Happened

Key Points

• Chimera Investment shares hit a new 52-week low, falling to $8.26 and trading down 1.6%. The stock is below both its 50-day ($10.71) and 200-day ($12.30) moving averages.
• Analyst sentiment remains cautious: the stock carries a consensus “Hold” rating with a $14.50 average price target, while recent reports included a downgrade and a reduced target from Keefe, Bruyette & Woods.
• The REIT reported quarterly EPS of $0.46, below the $0.54 consensus estimate, but declared a $0.45 quarterly dividend. The annualized $1.80 payout implies a very high 21.8% dividend yield.

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 $8.26 and last traded at $8.2480, with a volume of 114,315 shares. The stock had previously closed at $8.40.

Analysts Set New Price Targets

CIM has been the topic of several research analyst reports. Weiss Ratings cut Chimera Investment from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, September 18th. Keefe, Bruyette & Woods cut 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. Finally, Wall Street Zen raised shares of Chimera Investment from a "sell" rating to a "hold" rating in a report on Sunday, June 28th. One 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. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $14.50.

Chimera Investment Trading Down 1.6%

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 firm has a 50 day moving average of $10.71 and a 200 day moving average of $12.30. The firm has a market cap of $691.86 million, a PE ratio of -8.09 and a beta of 1.72.

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 (EPS) for the quarter, missing analysts' consensus estimates of $0.54 by ($0.08). The firm had revenue of $94.77 million during the quarter, compared to analysts' expectations 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 company also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Wednesday, September 30th will be paid a dividend of $0.45 per share. The ex-dividend date is Wednesday, September 30th. This represents a $1.80 annualized dividend and a dividend yield of 21.8%. Chimera Investment's dividend payout ratio is presently -176.47%.

Institutional Investors Weigh In On Chimera Investment

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CIM. Nykredit A S bought a new position in Chimera Investment during the second quarter worth about $29,000. Integrated Wealth Concepts LLC purchased a new position in shares of Chimera Investment in the second quarter worth about $46,000. Public Employees Retirement System of Ohio purchased a new position in shares of Chimera Investment in the second quarter worth about $60,000. Global Retirement Partners LLC bought a new stake in shares of Chimera Investment in the second quarter valued at approximately $79,000. Finally, IFP Advisors Inc raised its position in shares of 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 period. 48.44% of the stock is currently owned by institutional investors.

Chimera Investment Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.