Chimera Investment (NYSE:CIM) Posts Earnings Results, Misses Estimates By $0.07 EPS

Chimera Investment (NYSE:CIM) issued its quarterly earnings data on Thursday. The real estate investment trust reported $0.38 earnings per share for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.07), FiscalAI reports. Chimera Investment had a net margin of 0.14% and a return on equity of 9.82%. The company had revenue of ($118.00) million during the quarter, compared to the consensus estimate of $103.10 million.

Here are the key takeaways from Chimera Investment’s conference call:

• Chimera reported a $193.6 million GAAP net loss, and book value per share fell 16.5% to $14.82 as higher rates and wider mortgage spreads reduced asset valuations. The company said most valuation adjustments were unrealized and that credit performance remained within expectations.
• The investment portfolio generated $0.38 per share of earnings available for distribution (EAD) in the quarter; year-to-date EAD of $1.38 per share exceeded dividends of $1.35. Management said hedges helped cover margin calls, and Chimera did not need to sell assets to meet them.
• HomeXpress originated a record $1.12 billion in loans but earned only $430,000 in EBTDA, with a negative 7-basis-point net origination margin amid rapid rate and spread moves. Management expects roughly flat profitability in the fourth quarter while it clears older loans, with a return to profitability expected in the first quarter of 2027.
• Chimera completed its first securitization of HomeXpress-originated loans through the new Prism conduit, pricing the AAA bonds at a 160-basis-point spread amid a difficult market. The company also refinanced two non-mark-to-market financing facilities, extending maturities and lowering funding costs.
• Management said September’s repricing improved prospective returns on agency mortgage-backed securities, estimating agency returns in the mid-teens, and described the agency portfolio as a liquid source of capital for future investments. It cautioned that loans held ahead of securitization and continued market volatility could weigh on fourth-quarter results.

Chimera Investment Stock Performance

NYSE CIM traded down $0.78 during trading on Thursday, hitting $7.90. The company’s stock had a trading volume of 3,373,357 shares, compared to its average volume of 1,496,154. The company has a quick ratio of 0.07, a current ratio of 0.07 and a debt-to-equity ratio of 2.34. The firm has a 50 day moving average price of $9.77 and a 200 day moving average price of $12.20. The firm has a market cap of $661.66 million, a P/E ratio of -7.75 and a beta of 1.75. Chimera Investment has a 52 week low of $7.69 and a 52 week high of $14.18.

Chimera Investment Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th were given a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 22.8%. The ex-dividend date of this dividend was Wednesday, September 30th. Chimera Investment’s payout ratio is currently -176.47%.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the stock. Keefe, Bruyette & Woods lowered their target price on shares of Chimera Investment from $15.00 to $14.00 and set a “market perform” rating on the stock in a research note on Thursday, August 6th. Weiss Ratings downgraded shares of Chimera Investment from a “sell (d+)” rating to a “sell (d)” rating in a report on Friday, September 18th. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $14.50.

Chimera Investment News Summary

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

• Neutral Sentiment: The board declared fourth-quarter cash dividends of $0.50 per preferred share. This supports preferred shareholders but is not a common-stock dividend announcement. Article: Chimera Investment Declares Fourth-Quarter Preferred Stock Dividends
• Negative Sentiment: Chimera reported a GAAP net loss of $194 million, or $2.31 per diluted common share, and a 13.98% negative economic return for Q3. GAAP book value was $14.82 per common share. Article: Chimera Investment Corporation Reports Third Quarter 2026 Results
• Negative Sentiment: Earnings available for distribution were $0.38 per adjusted diluted share, missing the $0.45 consensus estimate. The reported revenue figure was negative $118 million, versus analyst estimates of $103.1 million, adding to concerns about the quarter. Article: Chimera Investment Q3 Earnings Results

About Chimera Investment

Chimera Investment Corporation (NYSE:CIM) is a real estate investment trust that invests primarily in residential mortgage assets and other real estate-related investments. The company seeks to generate income from a portfolio that may include residential mortgage loans, agency and non-agency residential mortgage-backed securities, and other mortgage-related assets.

Chimera’s investments can include whole residential mortgage loans and securitized interests backed by mortgages. Its portfolio has historically included both agency assets, which carry guarantees from government-sponsored entities or government agencies, and non-agency assets, which generally involve greater credit exposure.