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

Chimera Investment (NYSE:CIM) issued its quarterly earnings results on Wednesday. The real estate investment trust reported $0.46 earnings per share for the quarter, missing the consensus estimate of $0.54 by ($0.08), FiscalAI reports. Chimera Investment had a return on equity of 9.36% and a net margin of 2.27%.The business had revenue of $94.77 million for the quarter, compared to analysts’ expectations 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 Price Performance

Shares of Chimera Investment stock traded down $0.81 during trading hours on Wednesday, hitting $11.85. The company’s stock had a trading volume of 2,143,259 shares, compared to its average volume of 609,794. The company has a market cap of $991.17 million, a PE ratio of -14.81 and a beta of 1.67. 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 has a 50 day moving average price of $13.08 and a two-hundred day moving average price of $13.16. Chimera Investment has a 12-month low of $11.46 and a 12-month high of $14.88.

Chimera Investment Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Tuesday, June 30th were issued a dividend of $0.45 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $1.80 dividend on an annualized basis and a yield of 15.2%. Chimera Investment’s dividend payout ratio (DPR) is currently -225.00%.

Analysts Set New Price Targets

A number of equities analysts recently commented on CIM shares. Wall Street Zen raised Chimera Investment from a “sell” rating to a “hold” rating in a report on Sunday, June 28th. Royal Bank Of Canada reissued a “sector perform” rating and set a $14.00 price target on shares of Chimera Investment in a report on Wednesday, June 3rd. Finally, Weiss Ratings cut Chimera Investment from a “sell (d+)” rating to a “sell (d)” rating in a research report on Monday. One 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. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $14.75.

Institutional Inflows and Outflows

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

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.