Cherry Hill Mortgage Investment (NYSE:CHMI) Announces Earnings Results

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

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 Stock Down 0.2%

Shares of CHMI traded down $0.01 during trading hours on Thursday, reaching $2.58. The company’s stock had a trading volume of 97,683 shares, compared to its average volume of 149,028. The firm has a market cap of $94.61 million, a price-to-earnings ratio of -19.81 and a beta of 0.98. Cherry Hill Mortgage Investment has a 1-year low of $2.17 and a 1-year high of $3.31. The company has a 50 day moving average of $2.64 and a two-hundred day moving average of $2.56.

Cherry Hill Mortgage Investment Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Tuesday, March 31st were issued a $0.10 dividend. The ex-dividend date 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 dividend payout ratio is currently -307.69%.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Cherry Hill Mortgage Investment in a research note on Friday, March 27th. Citizens Jmp upped their target price on Cherry Hill Mortgage Investment from $2.75 to $3.00 and gave the company a “market outperform” rating in a report on Thursday, January 22nd. Citigroup reiterated an “outperform” rating on shares of Cherry Hill Mortgage Investment in a report on Thursday, January 22nd. Finally, Credit Suisse Group set a $3.00 target price on Cherry Hill Mortgage Investment in a report on Thursday, January 22nd. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Cherry Hill Mortgage Investment has an average rating of “Hold” and an average target price of $3.00.

Hedge Funds Weigh In On Cherry Hill Mortgage Investment

A number of large investors have recently made changes to their positions in CHMI. XTX Topco Ltd acquired a new position in shares of Cherry Hill Mortgage Investment in the 4th quarter valued at about $27,000. Glenview Trust co acquired a new position in Cherry Hill Mortgage Investment in the second quarter worth approximately $34,000. Envestnet Asset Management Inc. acquired a new position in Cherry Hill Mortgage Investment in the second quarter worth approximately $45,000. JPMorgan Chase & Co. increased its holdings in Cherry Hill Mortgage Investment by 27,027.0% in the third quarter. JPMorgan Chase & Co. now owns 20,074 shares of the real estate investment trust’s stock worth $48,000 after buying an additional 20,000 shares during the last quarter. Finally, Raymond James Financial Inc. increased its holdings in Cherry Hill Mortgage Investment by 38,518.9% in the third quarter. Raymond James Financial Inc. now owns 20,468 shares of the real estate investment trust’s stock worth $49,000 after buying an additional 20,415 shares during the last quarter. Institutional investors and hedge funds own 18.49% of the company’s stock.

About Cherry Hill Mortgage Investment

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.