Chimera Investment Corporation [NYSE: CIM] loss -1.34% or -0.2 points to close at $14.73 with a heavy trading volume of 1727446 shares. The company report on July 1, 2021 that Chimera Investment Corporation Sponsors Two Residential Mortgage Loan Securitizations.
On June 25, 2021, Chimera Investment Corporation (NYSE:CIM) sponsored CIM 2021-R4, a $545.7 million securitization of seasoned reperforming residential mortgage loans. The mortgage loans for the securitization were from the termination of Chimera’s CIM 2018-R1, CIM 2018-R2, and CIM 2018-R4 securitizations (the “Prior Securitizations”).
Securities issued by CIM 2021-R4, with an aggregate balance of approximately $463.8 million, were sold in a private placement to institutional investors. These senior securities represented approximately 85% of the capital structure. Chimera retained subordinate interests in securities with an aggregate balance of approximately $81.9 million and certain interest-only securities. Chimera also retained an option to call the securitized mortgage loans at any time beginning in June 2024. Chimera’s average cost of debt of this securitization is 1.97% compared to a weighted cost of debt of 3.79% for the Prior Securitizations.
It opened the trading session at $14.92, the shares rose to $14.96 and dropped to $14.65, the range by which the price of stock traded the whole day. The daily chart for CIM points out that the company has recorded 50.46% gains over the past six months. However, it is still -82.98% lower than its most recent low trading price.
If we look at the average trading volume of 2.03M shares, CIM reached to a volume of 1727446 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Chimera Investment Corporation [CIM]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CIM shares is $12.94 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CIM stock is a recommendation set at 3.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Barclays have made an estimate for Chimera Investment Corporation shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on December 10, 2020. The new note on the price target was released on October 03, 2019, representing the official price target for Chimera Investment Corporation stock. Previously, the target price had yet another raise to $19.50, while Credit Suisse analysts kept a Neutral rating on CIM stock.
The Average True Range (ATR) for Chimera Investment Corporation is set at 0.33, with the Price to Sales ratio for CIM stock in the period of the last 12 months amounting to 3.09. The Price to Book ratio for the last quarter was 0.95, with the Price to Cash per share for the same quarter was set at 1.37. Price to Free Cash Flow for CIM in the course of the last twelve months was 6.81.
Trading performance analysis for CIM stock
Chimera Investment Corporation [CIM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.74. With this latest performance, CIM shares dropped by -1.34% in over the last four-week period, additionally plugging by 50.46% over the last 6 months – not to mention a rise of 65.13% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CIM stock in for the last two-week period is set at 46.57, with the RSI for the last a single of trading hit 38.89, and the three-weeks RSI is set at 51.43 for Chimera Investment Corporation [CIM]. The present Moving Average for the last 50 days of trading for this stock 14.33, while it was recorded at 14.97 for the last single week of trading, and 11.57 for the last 200 days.
Chimera Investment Corporation [CIM]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Chimera Investment Corporation [CIM] shares currently have an operating margin of +95.30 and a Gross Margin at +92.41. Chimera Investment Corporation’s Net Margin is presently recorded at +12.84.
Return on Total Capital for CIM is now 3.07, given the latest momentum, and Return on Invested Capital for the company is 0.79. Return on Equity for this stock inclined to 2.30, with Return on Assets sitting at 0.40. When it comes to the capital structure of this company, Chimera Investment Corporation [CIM] has a Total Debt to Total Equity ratio set at 357.56. Additionally, CIM Total Debt to Total Capital is recorded at 78.14, with Total Debt to Total Assets ending up at 77.12. Long-Term Debt to Equity for the company is recorded at 213.41, with the Long-Term Debt to Total Capital now at 46.64.
Reflecting on the efficiency of the workforce at the company, Chimera Investment Corporation [CIM] managed to generate an average of $2,167,171 per employee. Receivables Turnover for the company is 2.15 with a Total Asset Turnover recorded at a value of 0.03.
Chimera Investment Corporation [CIM]: An earnings per share (EPS) analysis
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CIM. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Chimera Investment Corporation go to -2.53%.
An analysis of insider ownership at Chimera Investment Corporation [CIM]
There are presently around $1,655 million, or 49.70% of CIM stock, in the hands of institutional investors. The top three institutional holders of CIM stocks are: VANGUARD GROUP INC with ownership of 20,878,411, which is approximately 1.222% of the company’s market cap and around 1.40% of the total institutional ownership; BLACKROCK INC., holding 19,742,092 shares of the stock with an approximate value of $290.8 million in CIM stocks shares; and THORNBURG INVESTMENT MANAGEMENT INC, currently with $243.28 million in CIM stock with ownership of nearly 2.047% of the company’s market capitalization.
Positions in Chimera Investment Corporation stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 117 institutional holders increased their position in Chimera Investment Corporation [NYSE:CIM] by around 10,374,079 shares. Additionally, 103 investors decreased positions by around 9,864,567 shares, while 64 investors held positions by with 92,145,131 shares. The mentioned changes placed institutional holdings at 112,383,777 shares, according to the latest SEC report filing. CIM stock had 28 new institutional investments in for a total of 3,115,052 shares, while 31 institutional investors sold positions of 1,771,157 shares during the same period.