Chimera Investment (NYSE:CIM) Releases Earnings Results, Beats Expectations By $0.02 EPS

Chimera Investment (NYSE:CIM) announced its quarterly earnings results on Thursday. The real estate investment trust reported $0.54 EPS for the quarter, beating analysts’ consensus estimates of $0.52 by $0.02, FiscalAI reports. The company had revenue of $32.37 million during the quarter, compared to analysts’ expectations of $102.35 million. Chimera Investment had a return on equity of 9.24% and a net margin of 2.27%.

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

• HomeXpress origination grew 39% YoY to $884 million with EBITDA of $11.4 million (annualized ROE 16.8%), supported by increased warehouse capacity and tech/AI efficiency gains.
• Management redeemed eight securitizations, sold $1.2 billion of loans and released ~$195 million of capital that was redeployed into Agency RMBS, which management estimates could add roughly $15 million of annual earnings.
• First-quarter earnings available for distribution were $0.54 per share, covering the $0.45 dividend by ~1.2x and continuing a multi-quarter track record of EAD coverage while the dividend has been raised 36% over the past 10 quarters.
• GAAP results showed a net loss of about $65 million and GAAP book value per share fell 6.9% to $18.34 (management says ~two‑thirds of the decline was from securitization call mechanics and excluding that the decline was ~2.5%).
• Liquidity and positioning: the company reports several hundred million in cash/unencumbered assets, total leverage of 5.2x (recourse 2.9x), a larger Agency RMBS sleeve (21%), continued hedging/TBA activity, and plans to launch a HomeX securitization program later this year.

Chimera Investment Stock Up 0.8%

NYSE CIM traded up $0.11 during trading hours on Friday, reaching $13.65. 778,597 shares of the company’s stock were exchanged, compared to its average volume of 632,296. The company’s 50-day moving average is $13.28 and its two-hundred day moving average is $12.95. Chimera Investment has a one year low of $11.67 and a one year high of $14.88. The company has a debt-to-equity ratio of 2.71, a quick ratio of 0.06 and a current ratio of 0.06. The company has a market capitalization of $1.14 billion, a price-to-earnings ratio of -17.06 and a beta of 1.71.

Chimera Investment Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Investors of record on Tuesday, March 31st were paid a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a yield of 13.2%. The ex-dividend date of this dividend was Tuesday, March 31st. This is a positive change from Chimera Investment’s previous quarterly dividend of $0.37. Chimera Investment’s dividend payout ratio (DPR) is currently -225.00%.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. Weiss Ratings raised Chimera Investment from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday. Wall Street Zen cut Chimera Investment from a “hold” rating to a “sell” rating in a research note on Saturday, February 21st. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $14.50.

Hedge Funds Weigh In On Chimera Investment

Large investors have recently bought and sold shares of the company. Tower Research Capital LLC TRC boosted its position in Chimera Investment by 92.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,140 shares of the real estate investment trust’s stock worth $99,000 after acquiring an additional 3,423 shares during the last quarter. Kestra Advisory Services LLC acquired a new position in Chimera Investment during the 4th quarter worth approximately $105,000. BNP Paribas Financial Markets boosted its position in Chimera Investment by 59.2% during the 2nd quarter. BNP Paribas Financial Markets now owns 7,686 shares of the real estate investment trust’s stock worth $107,000 after acquiring an additional 2,857 shares during the last quarter. Landscape Capital Management L.L.C. acquired a new position in Chimera Investment during the 4th quarter worth approximately $129,000. Finally, WINTON GROUP Ltd acquired a new position in Chimera Investment during the 4th quarter worth approximately $154,000. Institutional investors and hedge funds own 48.44% of the company’s stock.

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.