Chimera Investment (NYSE:CIM) Sets New 52-Week Low - Time to Sell?

Key Points

• Chimera Investment fell to a new 52-week low of $9.12, trading below both its 50-day and 200-day moving averages. Analysts’ average rating is “Hold,” with an average price target of $14.50.
• The REIT missed quarterly earnings expectations, reporting adjusted EPS of $0.46 versus the $0.54 consensus estimate, while revenue also came in slightly below forecasts.
• Chimera declared a quarterly dividend of $0.45 per share, equivalent to a 19.5% annualized yield at the reported price, although its payout ratio was negative due to losses.

Chimera Investment Corporation (NYSE:CIM - Get Free Report) hit a new 52-week low during trading on Monday. The company traded as low as $9.12 and last traded at $9.2250, with a volume of 70279 shares. The stock had previously closed at $9.26.

Wall Street Analysts Forecast Growth

CIM has been the topic of a number of research reports. Keefe, Bruyette & Woods dropped their target price on Chimera Investment from $15.00 to $14.00 and set a "market perform" rating on the stock in a report on Thursday, August 6th. Weiss Ratings cut shares of Chimera Investment from a "sell (d+)" rating to a "sell (d)" rating in a report on Friday, September 18th. Finally, Wall Street Zen raised shares of Chimera Investment from a "sell" rating to a "hold" rating in a research report on Sunday, June 28th. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $14.50.

Chimera Investment Stock Performance

The firm has a market cap of $773.06 million, a price-to-earnings ratio of -9.05 and a beta of 1.72. The firm's 50 day moving average is $11.42 and its 200-day moving average is $12.58. The company has a debt-to-equity ratio of 2.34, a quick ratio of 0.07 and a current ratio of 0.07.

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

Chimera Investment Dividend Announcement

The business 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. This represents a $1.80 annualized dividend and a dividend yield of 19.5%. The ex-dividend date is Wednesday, September 30th. Chimera Investment's dividend payout ratio is -176.47%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. BlackRock Inc. grew its stake in Chimera Investment by 9.5% in the 2nd quarter. BlackRock Inc. now owns 7,855,125 shares of the real estate investment trust's stock valued at $104,787,000 after buying an additional 681,996 shares during the last quarter. Thornburg Investment Management Inc. lifted its position in Chimera Investment by 5.0% during the 4th quarter. Thornburg Investment Management Inc. now owns 5,268,481 shares of the real estate investment trust's stock worth $65,487,000 after acquiring an additional 249,127 shares during the last quarter. First Trust Advisors LP boosted its holdings in Chimera Investment by 82.0% during the first quarter. First Trust Advisors LP now owns 543,101 shares of the real estate investment trust's stock valued at $6,816,000 after acquiring an additional 244,763 shares during the period. Mariner Investment Group LLC boosted its holdings in Chimera Investment by 152.2% during the fourth quarter. Mariner Investment Group LLC now owns 290,000 shares of the real estate investment trust's stock valued at $3,605,000 after acquiring an additional 175,000 shares during the period. Finally, State Street Corp boosted its holdings in Chimera Investment by 7.8% during 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 acquiring an additional 147,629 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 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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