Chimera Investment (NYSE:CIM) Shares Gap Up After Strong Earnings

Chimera Investment Corporation (NYSE:CIM)’s share price gapped up prior to trading on Wednesday following a better than expected earnings announcement. 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 traded.

The real estate investment trust reported $0.53 EPS for the quarter, topping analysts’ consensus estimates of $0.50 by $0.03. Chimera Investment had a net margin of 4.27% and a return on equity of 7.36%. The business had revenue of $72.01 million for the quarter, compared to analysts’ expectations of $80.77 million.

Chimera Investment Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Tuesday, March 31st will be given a $0.45 dividend. This is a positive change from Chimera Investment’s previous quarterly dividend of $0.37. The ex-dividend date is Tuesday, March 31st. This represents a $1.80 dividend on an annualized basis and a dividend yield of 13.7%. Chimera Investment’s dividend payout ratio is -370.00%.

Trending Headlines about Chimera Investment

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

• Positive Sentiment: Management raised the quarterly dividend to $0.45 (annualized yield ~13.7%), a 21.6% increase from $0.37, with a record date of March 31 and payment April 30 — a direct positive for income-focused investors and likely a key driver of the stock’s upside. Earnings Call Highlights
• Positive Sentiment: Reported earnings available for distribution of $0.53 per adjusted diluted share, beating the $0.50 consensus — the EPS beat supports the stock despite other mixed metrics. Business Wire Press Release
• Neutral Sentiment: Management provided slides and a conference call/transcript; investors can review the deck and remarks for details on strategy, portfolio composition and capital allocation. These materials help clarify outlook but are informational rather than immediately price-moving. Conference Call / Transcript
• Negative Sentiment: Revenue missed expectations — $72.01M reported vs. $80.77M consensus — which tempers the positive EPS beat and could raise questions about underlying earning drivers. MarketBeat Earnings Summary
• Negative Sentiment: Short interest rose ~23.6% in January to ~2.2M shares (≈2.7% of shares outstanding), indicating increased bearish positioning that could create headwinds or volatility if sentiment shifts. (Source: short interest report)

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. Royal Bank Of Canada cut shares of Chimera Investment from an “outperform” rating to a “sector perform” rating and set a $13.00 price target on the stock. in a report on Tuesday, December 9th. Weiss Ratings restated a “sell (d)” rating on shares of Chimera Investment in a report on Monday, December 29th. Wall Street Zen raised shares of Chimera Investment from a “sell” rating to a “hold” rating in a report on Saturday, November 8th. Finally, UBS Group reduced their target price on Chimera Investment from $16.00 to $15.50 and set a “buy” rating for the company in a research report on Tuesday, November 18th. One research 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. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $14.50.

Institutional Investors Weigh In On Chimera Investment

Institutional investors and hedge funds have recently modified their holdings of the company. Deutsche Bank AG boosted its position in shares of Chimera Investment by 4.4% in the fourth quarter. Deutsche Bank AG now owns 66,931 shares of the real estate investment trust’s stock worth $832,000 after purchasing an additional 2,831 shares during the period. Fox Run Management L.L.C. purchased a new stake in Chimera Investment in the 4th quarter valued at about $173,000. LPL Financial LLC lifted its holdings in shares of Chimera Investment by 9.0% in the 4th quarter. LPL Financial LLC now owns 123,385 shares of the real estate investment trust’s stock worth $1,534,000 after buying an additional 10,207 shares during the period. Franklin Resources Inc. grew its position in shares of Chimera Investment by 11.6% in the 4th quarter. Franklin Resources Inc. now owns 101,443 shares of the real estate investment trust’s stock worth $1,261,000 after buying an additional 10,576 shares during the last quarter. Finally, WINTON GROUP Ltd acquired a new position in Chimera Investment during the 4th quarter valued at approximately $154,000. 48.44% of the stock is owned by hedge funds and other institutional investors.

Chimera Investment Stock Up 6.5%

The business’s 50-day simple moving average is $12.78 and its 200-day simple moving average is $13.10. The company has a market capitalization of $1.09 billion, a PE ratio of -32.74 and a beta of 1.84. The company has a current ratio of 8.22, a quick ratio of 8.22 and a debt-to-equity ratio of 4.75.

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.