Chimera Investment Corporation (NYSE: CIM) stock fell -9.52% on Friday to $6.84 against a previous-day closing price of $7.56. With 10.13 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.94 million shares. During the session, the REIT – Mortgage company that operates in wider Real Estate sector, reached to the highest price of $7.22 whereas the lowest price it dropped to was $6.70. The 52-week range on CIM shows that it touched its highest point at $16.85 and its lowest point at $7.56 during that stretch. It currently has a 1-year price target of $9.38. With its current market cap of 1.57 billion, CIM has annualized dividend of $1.32 while the current yield stands at 19.30%. Beta for the stock currently stands at 1.15.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CIM was down-trending over the past week, with a drop of -11.97%, but this was down by -23.06% over a month. Three-month performance dropped to -22.89% while six-month performance fell -44.34%. The stock lost -55.29% in the past year, while it has lost -54.64% so far this year. A look at the trailing 12-month EPS for CIM yields -0.67 with Next year EPS estimates of 1.23. For the next quarter, that number is 0.28. This implies an EPS growth rate of -25.80% for this year and -7.27% for next year. EPS is expected to decline by -2.54% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -3.60%.
Float and Shares Shorts:
At present, 235.31 million CIM shares are outstanding with a float of 228.62 million shares on hand for trading. On Jul 14, 2022, short shares totaled 11.33 million, which was 4.78% higher than short shares on Jun 14, 2022. In addition to Mr. Mohit Marria as the firm’s CEO, Chief Investment Officer & Director, Mr. Choudhary Yarlagadda serves as its Pres, COO & Director.
Through their ownership of 50.91% of CIM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 33.19% of CIM, in contrast to 2.55% held by mutual funds. Shares owned by individuals account for 17.76%. As the largest shareholder in CIM with 9.44% of the stake, The Vanguard Group, Inc. holds 21,872,083 shares worth 21,872,083. A second-largest stockholder of CIM, BlackRock Fund Advisors, holds 17,357,862 shares, controlling over 7.49% of the firm’s shares. Thornburg Investment Management, is the third largest shareholder in CIM, holding 17,331,693 shares or 7.48% stake. With a 7.47% stake in CIM, the Thornburg Investment Income Build is the largest stakeholder. A total of 17,317,311 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.13% of CIM stock, is the second-largest Mutual Fund holder. It holds 7,241,328 shares valued at 61.55 million. Vanguard Small Cap Index Fund holds 2.59% of the stake in CIM, owning 6,004,622 shares worth 51.04 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CIM since 7 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CIM analysts setting a high price target of $11.00 and a low target of $8.00, the average target price over the next 12 months is $9.38. Based on these targets, CIM could surge 60.82% to reach the target high and rise by 16.96% to reach the target low. Reaching the average price target will result in a growth of 37.13% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CIM will report FY 2022 earnings on 02/15/2023. Analysts have provided yearly estimates in a range of $1.40 being high and $1.23 being low. For CIM, this leads to a yearly average estimate of $1.33. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Chimera Investment Corporation surprised analysts by -$0.02 when it reported $0.31 EPS against a consensus estimate of $0.33. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is $0.33 and the low estimate is $0.26. The average estimate for the next quarter is thus $0.31.
Summary of Insider Activity:
Insiders traded CIM stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 14 while that of sell transactions has risen to 3 over the past year. The total number of shares bought during that period was 332,945 while 54,028 shares were sold.