Chimera Investment (NYSE:CIM) Issues Quarterly Earnings Results

Chimera Investment (NYSE:CIM) posted its quarterly earnings results on Thursday. The real estate investment trust reported $0.54 EPS for the quarter, beating the consensus estimate of $0.52 by $0.02, FiscalAI reports. Chimera Investment had a net margin of 2.27% and a return on equity of 9.24%. The company had revenue of $32.37 million for the quarter, compared to analyst estimates of $102.35 million.

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

• HomeXpress origination grew 39% YoY to $884 million with EBITDA of $11.4 million (annualized ROE 16.8%), supported by increased warehouse capacity and tech/AI efficiency gains.
• Management redeemed eight securitizations, sold $1.2 billion of loans and released ~$195 million of capital that was redeployed into Agency RMBS, which management estimates could add roughly $15 million of annual earnings.
• First-quarter earnings available for distribution were $0.54 per share, covering the $0.45 dividend by ~1.2x and continuing a multi-quarter track record of EAD coverage while the dividend has been raised 36% over the past 10 quarters.
• GAAP results showed a net loss of about $65 million and GAAP book value per share fell 6.9% to $18.34 (management says ~two‑thirds of the decline was from securitization call mechanics and excluding that the decline was ~2.5%).
• Liquidity and positioning: the company reports several hundred million in cash/unencumbered assets, total leverage of 5.2x (recourse 2.9x), a larger Agency RMBS sleeve (21%), continued hedging/TBA activity, and plans to launch a HomeX securitization program later this year.

Chimera Investment Price Performance

Shares of Chimera Investment stock traded up $0.11 during trading hours on Friday, reaching $13.65. The stock had a trading volume of 778,597 shares, compared to its average volume of 632,296. The stock’s 50 day moving average is $13.28 and its 200 day moving average is $12.95. The firm has a market capitalization of $1.14 billion, a PE ratio of -17.06 and a beta of 1.71. Chimera Investment has a twelve month low of $11.67 and a twelve month high of $14.88. The company has a current ratio of 0.06, a quick ratio of 0.06 and a debt-to-equity ratio of 2.71.

Chimera Investment Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 30th. Shareholders of record on Tuesday, March 31st were given a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a dividend yield of 13.2%. This is an increase from Chimera Investment’s previous quarterly dividend of $0.37. The ex-dividend date was Tuesday, March 31st. Chimera Investment’s payout ratio is currently -225.00%.

Analysts Set New Price Targets

CIM has been the topic of several recent research reports. Wall Street Zen lowered shares of Chimera Investment from a “hold” rating to a “sell” rating in a report on Saturday, February 21st. Weiss Ratings upgraded shares of Chimera Investment from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Wednesday. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $14.50.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of CIM. Tower Research Capital LLC TRC raised its position in shares of Chimera Investment by 92.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,140 shares of the real estate investment trust’s stock worth $99,000 after purchasing an additional 3,423 shares during the last quarter. Kestra Advisory Services LLC acquired a new position in shares of Chimera Investment during the 4th quarter worth about $105,000. BNP Paribas Financial Markets raised its position in shares of Chimera Investment by 59.2% during the 2nd quarter. BNP Paribas Financial Markets now owns 7,686 shares of the real estate investment trust’s stock worth $107,000 after purchasing an additional 2,857 shares during the last quarter. Landscape Capital Management L.L.C. acquired a new position in shares of Chimera Investment during the 4th quarter worth about $129,000. Finally, WINTON GROUP Ltd acquired a new position in shares of Chimera Investment during the 4th quarter worth about $154,000. Institutional investors and hedge funds own 48.44% of the company’s stock.

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.