Chimera Investment (NYSE:CIM) Shares Gap Up After Better-Than-Expected Earnings

Chimera Investment Corporation (NYSE:CIM) shares gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $12.30, but opened at $13.26. Chimera Investment shares last traded at $13.43, with a volume of 634,240 shares.

The real estate investment trust reported $0.53 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.03. Chimera Investment had a return on equity of 8.70% and a net margin of 28.06%.The business had revenue of $72.01 million during the quarter, compared to the consensus estimate of $80.77 million.

Chimera Investment Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Tuesday, March 31st will be issued a dividend of $0.45 per share. The ex-dividend date of this dividend is Tuesday, March 31st. This is a positive change from Chimera Investment’s previous quarterly dividend of $0.37. This represents a $1.80 annualized dividend and a yield of 13.6%. Chimera Investment’s payout ratio is -370.00%.

Key Stories Impacting Chimera Investment

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

• Positive Sentiment: Board raised the quarterly dividend to $0.45 (21.6% increase vs prior $0.37), implying an annualized yield around 13.7% — a very shareholder-friendly move that supports income-oriented buying. Dividend Boost Article
• Positive Sentiment: Adjusted earnings available for distribution (EAD) were $45M, or $0.53 per adjusted diluted share, beating consensus EPS of $0.50 — the EPS beat helped limit downside and supported the stock. Earnings Report
• Positive Sentiment: Book value remains solid at $19.70 per share, leaving the stock trading at a notable discount to book — a valuation cushion for investors. Press Release
• Neutral Sentiment: Management hosted an earnings call and published a slide deck and transcripts outlining strategy and portfolio positioning — useful for due diligence but not a direct catalyst by itself. Slide Deck/Call
• Negative Sentiment: Revenue missed expectations: reported revenue $72.01M vs. analyst estimate ~$80.77M — suggests lower underlying operating volume or margin pressure and is a caution for growth sustainability. Revenue Miss Article
• Negative Sentiment: GAAP net income was only $7M (GAAP EPS $0.08), highlighting the gap between GAAP and adjusted metrics — some investors may view that as a risk or a transparency point. GAAP Results

Analyst Upgrades and Downgrades

CIM has been the topic of a number of research reports. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Chimera Investment in a research note on Monday, December 29th. Wall Street Zen raised Chimera Investment from a “sell” rating to a “hold” rating in a report on Saturday, November 8th. Royal Bank Of Canada cut Chimera Investment from an “outperform” rating to a “sector perform” rating and set a $13.00 target price for the company. in a report on Tuesday, December 9th. Finally, UBS Group lowered their price target on Chimera Investment from $16.00 to $15.50 and set a “buy” rating on the stock in a research note on Tuesday, November 18th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $14.50.

Institutional Investors Weigh In On Chimera Investment

Large investors have recently made changes to their positions in the stock. Wedbush Securities Inc. increased its holdings in shares of Chimera Investment by 3.2% in the third quarter. Wedbush Securities Inc. now owns 29,430 shares of the real estate investment trust’s stock valued at $389,000 after purchasing an additional 917 shares during the last quarter. VSM Wealth Advisory LLC grew its holdings in Chimera Investment by 64.3% in the 3rd quarter. VSM Wealth Advisory LLC now owns 2,391 shares of the real estate investment trust’s stock valued at $32,000 after buying an additional 936 shares in the last quarter. Harbour Investments Inc. increased its stake in shares of Chimera Investment by 1.5% in the 4th quarter. Harbour Investments Inc. now owns 68,905 shares of the real estate investment trust’s stock worth $856,000 after acquiring an additional 994 shares during the last quarter. Cetera Investment Advisers raised its holdings in shares of Chimera Investment by 6.1% during the 2nd quarter. Cetera Investment Advisers now owns 19,926 shares of the real estate investment trust’s stock worth $276,000 after acquiring an additional 1,143 shares during the period. Finally, ProShare Advisors LLC raised its holdings in shares of Chimera Investment by 9.8% during the 4th quarter. ProShare Advisors LLC now owns 14,952 shares of the real estate investment trust’s stock worth $186,000 after acquiring an additional 1,335 shares during the period. 48.44% of the stock is currently owned by hedge funds and other institutional investors.

Chimera Investment Stock Performance

The company has a debt-to-equity ratio of 4.75, a quick ratio of 8.22 and a current ratio of 8.22. The firm’s 50-day moving average price is $12.79 and its two-hundred day moving average price is $13.10. The stock has a market cap of $1.10 billion, a price-to-earnings ratio of 7.57 and a beta of 1.84.

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.