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

Cherry Hill Mortgage Investment (NYSE:CHMI) announced its earnings results on Thursday. The real estate investment trust reported $0.14 earnings per share (EPS) for the quarter, topping 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 for 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 Performance

NYSE:CHMI traded down $0.01 during trading hours on Friday, hitting $2.59. The stock had a trading volume of 86,632 shares, compared to its average volume of 184,472. Cherry Hill Mortgage Investment has a one year low of $2.17 and a one year high of $3.31. The company has a market cap of $94.97 million, a price-to-earnings ratio of -19.88 and a beta of 0.98. The business’s 50 day moving average is $2.64 and its 200-day moving average is $2.56.

Cherry Hill Mortgage Investment Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Shareholders of record on Tuesday, March 31st were paid a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 15.5%. The ex-dividend date of this dividend was Tuesday, March 31st. Cherry Hill Mortgage Investment’s dividend payout ratio is presently -307.69%.

Analysts Set New Price Targets

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

Institutional Investors Weigh In On Cherry Hill Mortgage Investment

Several large investors have recently bought and sold shares of the company. Summit Financial LLC increased its stake in Cherry Hill Mortgage Investment by 106.1% in the fourth quarter. Summit Financial LLC now owns 1,010,876 shares of the real estate investment trust’s stock valued at $2,679,000 after purchasing an additional 520,291 shares in the last quarter. Geode Capital Management LLC increased its stake in Cherry Hill Mortgage Investment by 4.1% in the fourth quarter. Geode Capital Management LLC now owns 397,276 shares of the real estate investment trust’s stock valued at $1,013,000 after purchasing an additional 15,510 shares in the last quarter. Corient Private Wealth LLC bought a new stake in Cherry Hill Mortgage Investment in the second quarter valued at approximately $908,000. Two Sigma Investments LP increased its stake in Cherry Hill Mortgage Investment by 92.8% in the third quarter. Two Sigma Investments LP now owns 260,759 shares of the real estate investment trust’s stock valued at $623,000 after purchasing an additional 125,499 shares in the last quarter. Finally, State Street Corp increased its stake in Cherry Hill Mortgage Investment by 11.3% in the fourth quarter. State Street Corp now owns 150,191 shares of the real estate investment trust’s stock valued at $398,000 after purchasing an additional 15,300 shares in the last quarter. Institutional investors 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.