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

Chimera Investment (NYSE:CIM) posted 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. Chimera Investment had a net margin of 2.27% and a return on equity of 9.36%. The company had revenue of $94.77 million for the quarter, compared to analyst estimates of $95.30 million.

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 Stock Down 6.9%

Shares of CIM stock traded down $0.88 on Wednesday, reaching $11.79. 1,694,415 shares of the company’s stock traded hands, compared to its average volume of 777,814. The company has a market capitalization of $985.82 million, a P/E ratio of -14.73 and a beta of 1.67. Chimera Investment has a 12-month low of $11.46 and a 12-month high of $14.88. The company has a debt-to-equity ratio of 2.31, a quick ratio of 0.08 and a current ratio of 0.08. The business’s 50 day moving average price is $13.11 and its two-hundred day moving average price is $13.17.

Chimera Investment Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Tuesday, June 30th were given a $0.45 dividend. This represents a $1.80 annualized dividend and a dividend yield of 15.3%. The ex-dividend date of this dividend was Tuesday, June 30th. Chimera Investment’s dividend payout ratio (DPR) is -225.00%.

Analysts Set New Price Targets

Several equities research analysts have commented on CIM shares. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $14.00 price target on shares of Chimera Investment in a research report on Wednesday, June 3rd. Wall Street Zen raised shares of Chimera Investment from a “sell” rating to a “hold” rating in a research note on Sunday, June 28th. Finally, Weiss Ratings lowered shares of Chimera Investment from a “sell (d+)” rating to a “sell (d)” rating in a research note on Monday. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $14.75.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CIM. Millennium Management LLC grew its holdings in shares of Chimera Investment by 65.8% during the 4th quarter. Millennium Management LLC now owns 697,620 shares of the real estate investment trust’s stock valued at $8,671,000 after acquiring an additional 276,950 shares in the last quarter. Two Sigma Investments LP boosted its position in Chimera Investment by 88.7% during the third quarter. Two Sigma Investments LP now owns 574,456 shares of the real estate investment trust’s stock valued at $7,594,000 after purchasing an additional 270,034 shares during the last quarter. Qube Research & Technologies Ltd grew its stake in Chimera Investment by 214.9% in the third quarter. Qube Research & Technologies Ltd now owns 206,430 shares of the real estate investment trust’s stock valued at $2,729,000 after purchasing an additional 140,874 shares in the last quarter. Van ECK Associates Corp increased its position in Chimera Investment by 20.1% in the 4th quarter. Van ECK Associates Corp now owns 816,748 shares of the real estate investment trust’s stock worth $10,152,000 after purchasing an additional 136,423 shares during the last quarter. Finally, Mariner Investment Group LLC purchased a new stake in shares of Chimera Investment during the 3rd quarter worth about $1,520,000. 48.44% of the stock is owned by hedge funds and other 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.