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

Chimera Investment (NYSE:CIM) posted its 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 net margin of 2.27% and a return on equity of 9.36%. The business 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 Up 0.2%

CIM traded up $0.03 during trading on Thursday, reaching $11.88. The company had a trading volume of 817,280 shares, compared to its average volume of 780,753. The company has a debt-to-equity ratio of 2.31, a current ratio of 0.08 and a quick ratio of 0.08. The company has a market cap of $993.30 million, a P/E ratio of -14.84 and a beta of 1.67. The business’s fifty day moving average price is $13.08 and its 200 day moving average price is $13.16. Chimera Investment has a 12 month low of $11.46 and a 12 month high of $14.88.

Chimera Investment Announces Dividend

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

Chimera Investment News Roundup

Here are the key news stories impacting Chimera Investment this week:

• Positive Sentiment: Chimera reported $39 million of earnings available for distribution, or $0.46 per adjusted diluted common share, which supported its $0.45 quarterly common dividend. The board also declared third-quarter dividends on the company’s preferred shares. Chimera Investment second-quarter earnings release
• Positive Sentiment: Net interest income increased to $70.5 million from $66.0 million a year earlier. The residential origination business generated $8.7 million of net income, while the company completed $487 million of mortgage-loan resecuritizations and retained $301 million of newly originated loans. Chimera Q2 results
• Neutral Sentiment: GAAP net income was $17.4 million, but net income available to common shareholders was a $4.0 million loss, or negative $0.05 per diluted share. GAAP book value remained substantially above the market price at $17.75 per common share, although economic return for the quarter was negative 0.76%.
• Negative Sentiment: Adjusted earnings of $0.46 per share missed the $0.54 consensus estimate, while revenue of $94.77 million was slightly below the $95.30 million forecast. Provisions increased, contributing to the earnings shortfall and recent selling pressure. Chimera Investment Q2 earnings miss
• Negative Sentiment: Keefe, Bruyette & Woods lowered its price target from $15 to $14 and maintained a “market perform” rating, signaling limited conviction despite the target implying potential upside. Leverage also increased to 5.6 times from 5.1 times at the end of 2025. Benzinga analyst update

Institutional Investors Weigh In On Chimera Investment

Several hedge funds have recently bought and sold shares of the company. Dynamic Technology Lab Private Ltd grew its stake in shares of Chimera Investment by 36.1% in the first quarter. Dynamic Technology Lab Private Ltd now owns 16,568 shares of the real estate investment trust’s stock valued at $213,000 after acquiring an additional 4,399 shares in the last quarter. Empowered Funds LLC raised its holdings in Chimera Investment by 12.9% during the first quarter. Empowered Funds LLC now owns 21,322 shares of the real estate investment trust’s stock worth $274,000 after buying an additional 2,430 shares during the last quarter. Creative Planning boosted its holdings in Chimera Investment by 82.3% during the 2nd quarter. Creative Planning now owns 21,766 shares of the real estate investment trust’s stock worth $302,000 after acquiring an additional 9,828 shares during the last quarter. Cetera Investment Advisers increased its position in shares of Chimera Investment by 6.1% during the second quarter. Cetera Investment Advisers now owns 19,926 shares of the real estate investment trust’s stock valued at $276,000 after acquiring an additional 1,143 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its position in Chimera Investment by 42.6% in the second quarter. JPMorgan Chase & Co. now owns 246,471 shares of the real estate investment trust’s stock worth $3,419,000 after acquiring an additional 73,634 shares during the period. 48.44% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on CIM shares. Royal Bank Of Canada reissued a “sector perform” rating and set a $14.00 price target on shares of Chimera Investment in a research report on Wednesday, June 3rd. Keefe, Bruyette & Woods cut their price objective on Chimera Investment from $15.00 to $14.00 and set a “market perform” rating for the company in a report on Thursday. Weiss Ratings cut Chimera Investment from a “sell (d+)” rating to a “sell (d)” rating in a research report on Monday. Finally, Wall Street Zen upgraded Chimera Investment from a “sell” rating to a “hold” rating in a research note on Sunday, June 28th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Chimera Investment has an average rating of “Hold” and an average target price of $14.50.

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.