Cherry Hill Mortgage Investment (NYSE:CHMI) Releases Earnings Results, Beats Expectations By $0.02 EPS

Cherry Hill Mortgage Investment (NYSE:CHMI) released its earnings results on Thursday. The real estate investment trust reported $0.14 earnings per share for the quarter, beating analysts’ consensus estimates of $0.12 by $0.02, FiscalAI reports. The firm had revenue of $4.64 million during the quarter, compared to the consensus estimate of $10.30 million. Cherry Hill Mortgage Investment had a return on equity of 16.21% and a net margin of 7.28%.

Here are the key takeaways from Cherry Hill Mortgage Investment’s conference call:

• Q1 results — GAAP net loss was $0.05 per diluted share and book value per common share fell 6.1% to $3.23 (economic return -3.2% and NAV down ~3.3%), signaling near-term mark-to-market pressure on equity.
• Liquidity and capital maintenance — the company ended the quarter with $47 million of unrestricted cash, maintained modest leverage at 5.5x, and paid a $0.10 per-share common dividend (preferred dividends were also paid).
• Portfolio composition and prepayment dynamics — MSR UPB was $15.6 billion (market value ≈ $213 million) and MSR + RMBS together comprise most of equity capital, with low MSR net CPR (~4.5%) and RMBS CPR (~8%) and only ~14% of the mortgage universe refinanceable, which supports mortgage technicals if volatility abates.
• Hedging and mark-to-market treatment — management deployed about $396 million notional of swaps/TBAs/futures and acted in March to protect book value, but the company has not elected hedge accounting so derivative fair-value changes flow through GAAP results.
• Outlook and return potential — management expects elevated near-term volatility from geopolitical risk but notes April stabilization (book value up ~2% since 3/31) and cites estimated levered returns of mid‑to‑high‑teens for RMBS and ~10–12% for MSR if market stability persists.

Cherry Hill Mortgage Investment Trading Down 0.2%

CHMI traded down $0.01 on Friday, reaching $2.59. The stock had a trading volume of 73,498 shares, compared to its average volume of 184,469. Cherry Hill Mortgage Investment has a fifty-two week low of $2.17 and a fifty-two week high of $3.31. The firm has a 50-day moving average of $2.64 and a 200-day moving average of $2.56. The company has a market capitalization of $94.97 million, a price-to-earnings ratio of -19.88 and a beta of 0.98.

Cherry Hill Mortgage Investment Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Tuesday, March 31st were issued a dividend of $0.10 per share. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $0.40 dividend on an annualized basis and a dividend yield of 15.5%. Cherry Hill Mortgage Investment’s payout ratio is -307.69%.

Analyst Upgrades and Downgrades

CHMI has been the subject of a number of recent analyst reports. Citigroup reiterated an “outperform” rating on shares of Cherry Hill Mortgage Investment in a research report on Thursday, January 22nd. Citizens Jmp boosted their price target on Cherry Hill Mortgage Investment from $2.75 to $3.00 and gave the stock a “market outperform” rating in a report on Thursday, January 22nd. Weiss Ratings reissued a “sell (d)” rating on shares of Cherry Hill Mortgage Investment in a report on Friday, March 27th. Finally, Credit Suisse Group set a $3.00 price target on Cherry Hill Mortgage Investment in a report on Thursday, January 22nd. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $3.00.

Hedge Funds Weigh In On Cherry Hill Mortgage Investment

A number of institutional investors and hedge funds have recently bought and sold shares of CHMI. XTX Topco Ltd acquired a new position in Cherry Hill Mortgage Investment in the 4th quarter worth about $27,000. Glenview Trust co acquired a new position in Cherry Hill Mortgage Investment in the 2nd quarter worth about $34,000. Envestnet Asset Management Inc. acquired a new position in Cherry Hill Mortgage Investment in the 2nd quarter worth about $45,000. JPMorgan Chase & Co. increased its holdings in Cherry Hill Mortgage Investment by 27,027.0% in the 3rd quarter. JPMorgan Chase & Co. now owns 20,074 shares of the real estate investment trust’s stock worth $48,000 after purchasing an additional 20,000 shares in the last quarter. Finally, Raymond James Financial Inc. increased its holdings in Cherry Hill Mortgage Investment by 38,518.9% in the 3rd quarter. Raymond James Financial Inc. now owns 20,468 shares of the real estate investment trust’s stock worth $49,000 after purchasing an additional 20,415 shares in the last quarter. Institutional investors and hedge funds own 18.49% of the company’s stock.

Cherry Hill Mortgage Investment Company Profile

Cherry Hill Mortgage Investment Corporation is a real estate investment trust that focuses on acquiring, financing and managing residential mortgage loans and mortgage-related securities. The company’s portfolio consists primarily of agency and non-agency residential mortgage loans secured by single-family residences, together with mortgage-backed securities issued or guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.

CHMI employs active portfolio management strategies intended to generate current income and total return for its shareholders.