Chimera Investment Corporation (NYSE:CIM) Q2 Results

[Business Wire] Chimera Investment Corporation (NYSE:CIM) (TREND ANALYSISand Annaly Capital Management, Inc. (“Annaly”) jointly announced that, effective today, Chimera is internalizing its management function. The independent directors on Chimera’s Board agreed to the internalization with Annaly in order to accelerate growth and realize cost efficiencies. Chimera will continue to be led by its key professionals including President and Chief Executive Officer Matthew Lambiase, Chief Financial Officer Rob Colligan and Chief Investment Officer Mohit Marria. In addition, Chimera’s head of structured products, Choudhary Yarlagadda, was appointed Chief Operating Officer and Phillip J. Kardis II, a partner at the law firm K&L Gates LLP, was appointed General Counsel. All other personnel that focus their efforts on Chimera’s business became employees of Chimera.

“This transaction is an exciting new chapter in the growth of Chimera,” said Matt Lambiase, Chimera’s President and Chief Executive Officer. “Chimera is strongly positioned to take advantage of the market opportunities in the residential mortgage credit space and the internalization represents an opportune time to transition to a standalone infrastructure company as the portfolio continues to grow. The internalization will ensure continuity of the leadership team while enhancing the Company’s ability to drive shareholder value through a lower cost base, simplified structure and more focused strategy.”

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Chimera Investment Corporation (NYSE:CIM) stock is currently trading 17.89% below its 52-week-high, 2.56% above its 52-week-low. The 1-year stock price history is in the range of $13.65 – $17.05. Chimera Investment Corporation (CIM) has a price to earnings ratio of 5.11 versus Financial sector average of 16.77. CIM stock price has underperformed the S&P 500 by 7.8%. The Diversified REIT company is currently valued at $2.88 billion and its share price closed the last trading session at $14. The stock has a 50-day moving average of $14.09 and a 200-day moving average of $15.05.

Chimera Investment Corporation (CIM) current short interest stands at 2.3 million shares. It has decreased by 22% from the same period of last month. Around 2% of the company’s shares, which are float, are short sold. With a 10-days average volume of 1.79 million shares, the number of days required to cover the short positions stand at 1.3 days.

CIM reported last quarter earnings on August 05. The Diversified REIT company announced earnings per share of $0.53 against a consensus Street estimate of $0.6, missing estimate by $0.07. This corresponds to an increase of $0.6 compared to the same quarter of the previous fiscal year.

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There are currently seven analysts that cover Chimera Investment Corporation stock. Of those seven, two have a Buy rating, four have a Hold rating and one has a Sell rating. On a consensus basis this yields to a Hold rating. The consensus target price stands at $15.

A recent analyst activity consisted of Keefe Bruyette& Woods reiterating their Market Perform stance on August 13. Keefe Bruyette& Woods decreased price target from $15 to $14. This corresponds to a 0% upside from the last closing price. On the date of report, the stock closed at $14.

Wells Fargo upgraded their Market Perform rating to Outperform on July 7. On the date of report, the stock closed at $14.34.

Another research firm was Nomura who initiated their coverage on the stock with Buy rating on June 29. Nomura fixed their price target at $16. This translates to a 14.29% upside from the last closing price. On the date of report, the stock closed at $13.72.

Company profile

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in residential mortgage-backed securities (RMBS), residential mortgage loans, commercial mortgage loans, real estate-related securities, and other asset classes. Its targeted asset classes include agency or non-agency RMBS; prime, jumbo prime, and Alt-A mortgage loans; first or second lien loans secured by multifamily properties, mixed residential or other commercial properties, retail properties, office properties, or industrial properties; and asset-based securities (ABS), including commercial mortgage-backed securities, debt and equity tranches of collateralized debt obligations, and consumer and non-consumer ABS. The company has elected to be treated as a REIT for federal income tax purposes and would not be subject to income tax, if it distributes at least 90% of its REIT taxable income to its shareholders. Chimera Investment Corporation was founded in 2007 and is based in New York, New York.

Chimera Investment Corporation (NYSE:CIM) Q2 Results was last modified: August 14th, 2015 by Kelly Rhodes