Chimera Investment (NYSE:CIM) Posts Earnings Results, Beats Expectations By $0.03 EPS

Chimera Investment (NYSE:CIM) announced its earnings results on Wednesday. The real estate investment trust reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.03, FiscalAI reports. The firm had revenue of $72.01 million for the quarter, compared to analysts’ expectations of $80.77 million. Chimera Investment had a net margin of 28.06% and a return on equity of 8.70%.

Here are the key takeaways from Chimera Investment’s conference call:

• Chimera raised its quarterly dividend by 22% to $0.45, and the board expects to maintain that level for the remainder of 2026, signaling management confidence in distributable earnings.
• The company completed the acquisition of Home Express, which originated $1.04 billion in Q4 with $11 million of EBITDA, and management expects synergies plus securitization/retention strategies to boost fee and gain-on-sale income.
• Management generated over $600 million of redeployable capital through asset sales and securitization actions and materially increased Agency RMBS exposure (now ~16%) to improve liquidity and earnings power.
• GAAP book value ended Q4 at $19.70 (down ~2.7% in the quarter), Q4 GAAP net income was only $7 million, total leverage is elevated at 5.1x, and cash/unencumbered assets fell to $528 million after the Home Express purchase—risks that could pressure the stock if earnings or capital metrics deteriorate.
• For 2026 the company will continue to prioritize Agency MBS, MSRs, and fee-based businesses and cites robust non‑QM demand, but the ultimate impact on sustained fee growth and book value depends on execution and market conditions.

Chimera Investment Trading Up 3.7%

Shares of NYSE CIM traded up $0.50 during mid-day trading on Friday, reaching $13.76. The company had a trading volume of 475,899 shares, compared to its average volume of 885,206. The stock has a market cap of $1.14 billion, a price-to-earnings ratio of 7.88 and a beta of 1.84. Chimera Investment has a 52 week low of $9.85 and a 52 week high of $14.88. The business’s 50-day moving average is $12.79 and its 200-day moving average is $13.10. The company has a current ratio of 8.22, a quick ratio of 8.22 and a debt-to-equity ratio of 4.75.

Chimera Investment Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Tuesday, March 31st will be paid a dividend of $0.45 per share. This is an increase from Chimera Investment’s previous quarterly dividend of $0.37. This represents a $1.80 dividend on an annualized basis and a dividend yield of 13.1%. The ex-dividend date of this dividend is Tuesday, March 31st. Chimera Investment’s payout ratio is presently -370.00%.

Hedge Funds Weigh In On Chimera Investment

Hedge funds have recently added to or reduced their stakes in the stock. Cetera Investment Advisers increased its position in shares of Chimera Investment by 6.1% during the second quarter. Cetera Investment Advisers now owns 19,926 shares of the real estate investment trust’s stock worth $276,000 after acquiring an additional 1,143 shares during the period. Intech Investment Management LLC grew its stake in Chimera Investment by 4.5% in the third quarter. Intech Investment Management LLC now owns 33,098 shares of the real estate investment trust’s stock worth $438,000 after purchasing an additional 1,421 shares in the last quarter. Sei Investments Co. increased its holdings in Chimera Investment by 11.0% during the 2nd quarter. Sei Investments Co. now owns 21,182 shares of the real estate investment trust’s stock worth $294,000 after purchasing an additional 2,107 shares during the period. Empowered Funds LLC raised its position in Chimera Investment by 12.9% during the 1st quarter. Empowered Funds LLC now owns 21,322 shares of the real estate investment trust’s stock valued at $274,000 after purchasing an additional 2,430 shares in the last quarter. Finally, Swiss National Bank lifted its holdings in shares of Chimera Investment by 1.6% in the 3rd quarter. Swiss National Bank now owns 157,027 shares of the real estate investment trust’s stock worth $2,076,000 after buying an additional 2,500 shares during the period. 48.44% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

CIM has been the subject of several analyst reports. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Chimera Investment in a research note on Monday, December 29th. Royal Bank Of Canada lowered Chimera Investment from an “outperform” rating to a “sector perform” rating and set a $13.00 price target on the stock. in a report on Tuesday, December 9th. UBS Group lowered their price target on Chimera Investment from $16.00 to $15.50 and set a “buy” rating for the company in a research report on Tuesday, November 18th. Finally, Wall Street Zen raised shares of Chimera Investment from a “sell” rating to a “hold” rating in a research note on Saturday, November 8th. One equities 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. Based on data from MarketBeat, Chimera Investment has a consensus rating of “Hold” and an average price target of $14.50.

About Chimera Investment

Chimera Investment Corporation (NYSE: CIM) is a publicly traded real estate investment trust that specializes in investing in residential mortgage assets. The company’s portfolio primarily consists of agency and non-agency residential mortgage-backed securities, whole loan residential mortgages and other mortgage-related assets. As a REIT, Chimera Investment aims to generate attractive risk-adjusted returns through its focus on high-quality collateral and disciplined risk management.

The firm’s core business activities include identifying and acquiring portfolios of residential mortgage loans and securities from financial institutions and in the secondary market.