Chimera Investment (NYSE:CIM) Releases Quarterly Earnings Results, Misses Expectations By $0.08 EPS

Chimera Investment (NYSE:CIM) issued its quarterly earnings data on Wednesday. The real estate investment trust reported $0.46 EPS for the quarter, missing analysts’ consensus estimates of $0.54 by ($0.08), FiscalAI reports. The company had revenue of $94.77 million for the quarter, compared to the consensus estimate of $95.30 million. Chimera Investment had a return on equity of 9.70% and a net margin of 0.14%.

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

• Earnings available for distribution were $0.46 per share, covering the $0.45 quarterly dividend. Management reiterated its expectation of at least $1.80 in 2026 EAD, despite ongoing market uncertainty.
• Book value per share declined 3.2% to $17.75 during the quarter, reflecting higher interest rates and weaker marks on Chimera’s securitized loan portfolio; management said book value was down approximately 1.5% quarter-to-date.
• HomeXpress delivered record $1.1 billion loan production, up 30% year over year and 24% sequentially, but earnings growth was modest as competition compressed margins. The company plans to improve profitability through greater scale, operating efficiencies, and disciplined underwriting.
• Chimera is pivoting toward acquiring and securitizing HomeXpress and third-party mortgage loans, targeting two HomeXpress transactions and one third-party transaction by year-end. Management expects to decide opportunistically whether to retain credit risk for recurring income or distribute transactions and recognize gain-on-sale revenue.
• The investment portfolio was repositioned toward more liquid, higher-yielding assets, with agency MBS increasing to 26% of invested capital and approximately $656 million of cash and unencumbered assets maintained. Credit performance also improved in re-performing and investor DSCR portfolios, while residential credit financing remained conservatively structured.

Chimera Investment Trading Up 1.7%

Shares of CIM stock traded up $0.20 on Friday, hitting $12.06. 363,704 shares of the company’s stock traded hands, compared to its average volume of 780,536. The stock has a market capitalization of $1.01 billion, a price-to-earnings ratio of -11.83 and a beta of 1.67. Chimera Investment has a one year low of $11.46 and a one year high of $14.88. The company’s fifty day simple moving average is $13.05 and its 200 day simple moving average is $13.15. The company has a debt-to-equity ratio of 2.31, a quick ratio of 0.08 and a current ratio of 0.08.

Chimera Investment Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Tuesday, June 30th were paid a $0.45 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 14.9%. Chimera Investment’s dividend payout ratio is -225.00%.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Weiss Ratings cut Chimera Investment from a “sell (d+)” rating to a “sell (d)” rating in a research note on Monday. Wall Street Zen raised shares of Chimera Investment from a “sell” rating to a “hold” rating in a research report on Sunday, June 28th. Keefe, Bruyette & Woods reduced their price target on Chimera Investment from $15.00 to $14.00 and set a “market perform” rating for the company in a report on Thursday. Finally, Royal Bank Of Canada reiterated a “sector perform” rating and set a $14.00 target price on shares of Chimera Investment in a research note on Wednesday, June 3rd. One 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 stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $14.50.

Institutional Investors Weigh In On Chimera Investment

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

Chimera Investment Company Profile

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.