Chimera Investment (NYSE:CIM) Shares Gap Down – Should You Sell?

Chimera Investment Corporation (NYSE:CIM)’s stock price gapped down prior to trading on Wednesday. The stock had previously closed at $10.20, but opened at $9.84. Chimera Investment shares last traded at $9.8550, with a volume of 164,202 shares traded.

Wall Street Analyst Weigh In

CIM has been the subject of a number of recent research reports. 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 reduced their target price on shares of Chimera Investment from $15.00 to $14.00 and set a “market perform” rating for the company in a report on Thursday, August 6th. Wall Street Zen raised shares of Chimera Investment from a “sell” rating to a “hold” rating in a report on Sunday, June 28th. Finally, Weiss Ratings downgraded Chimera Investment from a “sell (d+)” rating to a “sell (d)” rating in a research report on Friday, September 18th. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $14.50.

Chimera Investment Stock Performance

The company has a current ratio of 0.07, a quick ratio of 0.07 and a debt-to-equity ratio of 2.34. The firm’s fifty day moving average price is $11.60 and its two-hundred day moving average price is $12.66. The stock has a market capitalization of $811.59 million, a PE ratio of -9.53 and a beta of 1.66.

Chimera Investment (NYSE:CIM) last announced its quarterly earnings results on Wednesday, August 5th. The real estate investment trust reported $0.46 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.54 by ($0.08). The firm had revenue of $94.77 million for the quarter, compared to analysts’ expectations of $95.30 million. Chimera Investment had a return on equity of 9.82% and a net margin of 0.14%.

Chimera Investment Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Wednesday, September 30th will be paid a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 18.6%. The ex-dividend date of this dividend is Wednesday, September 30th. Chimera Investment’s dividend payout ratio is presently -176.47%.

Hedge Funds Weigh In On Chimera Investment

Institutional investors and hedge funds have recently modified their holdings of the business. State Street Corp raised its holdings in Chimera Investment by 7.8% in the 2nd quarter. State Street Corp now owns 2,029,275 shares of the real estate investment trust’s stock worth $27,957,000 after purchasing an additional 147,629 shares during the period. Engineers Gate Manager LP grew its holdings in Chimera Investment by 31.1% in the second quarter. Engineers Gate Manager LP now owns 51,834 shares of the real estate investment trust’s stock valued at $691,000 after purchasing an additional 12,288 shares during the period. Integrated Wealth Concepts LLC purchased a new stake in shares of Chimera Investment in the second quarter valued at approximately $46,000. IFP Advisors Inc increased its position in shares of Chimera Investment by 52.5% in the second quarter. IFP Advisors Inc now owns 10,412 shares of the real estate investment trust’s stock valued at $139,000 after buying an additional 3,586 shares in the last quarter. Finally, Nykredit A S acquired a new position in shares of Chimera Investment during the 2nd quarter worth approximately $29,000. Hedge funds and other institutional investors own 48.44% of the company’s stock.

Chimera Investment Company Profile

Chimera Investment Corporation is a real estate investment trust that invests in residential mortgage assets. The company’s portfolio has historically included residential mortgage-backed securities, residential mortgage loans and other mortgage-related investments, including both agency and non-agency assets.

Chimera seeks to generate income from the interest and cash flows associated with its investments. Its activities are primarily focused on the U.S. residential housing and mortgage markets, and the company may invest in assets with different levels of credit and prepayment risk.

Founded in 2007, Chimera is externally managed and has operated as a mortgage-focused REIT.