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Chimera Investment
(NYSE:CIM)
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Rating:49Neutral
Price Target:
$12.00
â–¼(-4.00% Downside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by pressured financial performance—especially negative recent cash flows, sharp TTM revenue decline, and leverage-related risk—along with weak technical momentum (below key moving averages and negative MACD). These are partially offset by an attractive dividend yield and an earnings call that reaffirmed dividend coverage and full-year EAD guidance, though book value decline and margin pressure remain meaningful constraints.
Positive Factors
HomeXpress origination scale
Sustained, scalable originations materially diversify Chimera’s revenue beyond net interest spread. Growing HomeXpress volume supports fee and mortgage‑loan pipelines, enables securitization economics, improves warehouse utilization and builds durable, repeatable fee income that reduces reliance on portfolio mark moves.
Negative Factors
Elevated leverage
High leverage amplifies sensitivity to funding cost moves and market marks. With significant secured financing and resecuritization activity, funding shocks or higher haircuts can force asset sales or margin calls, constraining strategic flexibility and increasing probability of portfolio realizations during stress periods.
Read all positive and negative factors
Positive Factors
Negative Factors
HomeXpress origination scale
Sustained, scalable originations materially diversify Chimera’s revenue beyond net interest spread. Growing HomeXpress volume supports fee and mortgage‑loan pipelines, enables securitization economics, improves warehouse utilization and builds durable, repeatable fee income that reduces reliance on portfolio mark moves.
Read all positive factors
Chimera Investment (CIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.04B
Dividend Yield13.14%
Average Volume (3M)718.96K
Price to Earnings (P/E)―
Beta (1Y)0.72
Revenue Growth10.27%
EPS Growth-151.66%
CountryUS
Employees423
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)-0.75
Shares Outstanding83,646,020
10 Day Avg. Volume601,229
30 Day Avg. Volume718,955
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.40
Price to Sales (P/S)1.24
P/FCF Ratio-4.10
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$14.00Price Target Upside12.00% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)2.12
Revenue Forecast (FY)$386.59M
Chimera Investment Business Overview & Revenue Model
Company Description
Chimera Investment Corporation (CIM) operates as a U.S.-based real estate investment trust (REIT), having elected to be taxed under this specific structure. Through its various subsidiaries, the company primarily focuses on building a diverse port...
How the Company Makes Money
Chimera Investment generally makes money through net interest income and investment returns generated from a leveraged portfolio of residential mortgage-related assets.
Key revenue and earnings drivers include:
1) Net interest spread (core mortga...
Chimera Investment Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Neutral
The call presented a mix of constructive operational and strategic progress alongside near-term financial and market challenges. Key positives include strong HomeXpress origination growth (record $1.1B), improved credit metrics, successful portfolio repositioning (nearly $700M redeployed), agency allocation increase, and EAD that covered the dividend with a reiterated annual EAD target of at least $1.80. Offsetting these strengths were a small GAAP net loss, a 3.2% decline in book value, margin compression at HomeXpress limiting earnings despite higher production, higher leverage from resecuritizations, and sensitivity to recent rate volatility that reduced mark-to-market values and slightly lowered liquidity. Management’s tone was constructive and focused on execution (securitizations, retaining/seeding deals, cost control, and hedging adjustments), but the near-term financial picture remains mixed due to market-driven marks and competitive margin pressure.Positive Updates
Earnings Available for Distribution and Dividend Coverage
EAD of $39 million, or $0.46 per share, in Q2 2026 covered the quarterly dividend of $0.45; first half EAD totaled $1.00 with management reiterating full-year EAD target of at least $1.80.
Negative Updates
GAAP Net Loss and Investment Portfolio Loss
GAAP net loss for Q2 was approximately $4 million; the investment portfolio produced a net loss of $13 million, partially offset by $9 million net income from residential origination.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings Available for Distribution and Dividend Coverage
EAD of $39 million, or $0.46 per share, in Q2 2026 covered the quarterly dividend of $0.45; first half EAD totaled $1.00 with management reiterating full-year EAD target of at least $1.80.
Read all positive updates
Company Guidance
Management reiterated full‑year EAD guidance of at least $1.80 (Q2 EAD $0.46; Q1 EAD $0.54 included $0.07 of one‑time items implying an underlying run‑rate of ~$0.47; H1 EAD $1.00), said the quarterly dividend of $0.45 was covered by Q2 results, and signaled plans to securitize more mortgage loans (targeting two HomeXpress deals and one third‑party deal by year‑end, having retained $301m to seed the first HomeXpress deal on track for Q3). HomeXpress metrics: Q2 funded $1.1bn (up 30% YoY, 24% QoQ) with a June monthly record of $420m, EBITDA $11.8m (EBITDA ROE 17.3%), net origination margin 124 bps (+10 bps QoQ), average loan size >$455k (vs $410k in Q1), warehouse capacity expanded to $1.65bn, and a broker network of >6,350 supported by 145 account executives. Corporate/portfolio metrics and guidance: GAAP net loss ~$(4)m (investment portfolio loss $(13)m offset by $9m from residential origination), book value/share down 3.2% to $17.75 (economic return on GAAP book value –0.8%), annualized EAD return on average common equity 10.35%; investment portfolio economic NII $66.3m (economic NII ROE 12.35%), yield on average interest‑earning assets 5.9%, average cost of funds 4.3% (net interest spread 1.6%). Balance sheet and liquidity: total leverage 5.6:1 (recourse 3.3:1), cash and unencumbered assets $656m, consolidated secured financing $7.7bn (warehouse $727m; ~ $7bn for the investment portfolio), with $5.1bn secured against agencies (hedges ~$4.9bn) and $1.9bn secured by residential credit of which $1.2bn (61%) is non/limited MTM and $1.1bn (55% of the $1.9bn) is floating; management expects to support full‑year dividend coverage, grow fee income and securitization activity, and remain disciplined on credit and liquidity.Chimera Investment Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
46
Neutral
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 826.09M | 820.77M | 257.93M | 204.77M | -415.21M | 1.06B |
| Gross Profit | 505.04M | 778.67M | 257.93M | 204.77M | -415.21M | 1.06B |
| EBITDA | 168.98M | 794.87M | 672.71M | 635.75M | -118.54M | 1.07B |
| Net Income | 1.21M | 230.50M | 176.06M | 126.10M | -513.07M | 670.11M |
Balance Sheet | ||||||
| Total Assets | 16.05B | 15.81B | 13.12B | 12.93B | 13.40B | 15.41B |
| Cash, Cash Equivalents and Short-Term Investments | 444.04M | 278.58M | 84.11M | 221.68M | 264.60M | 385.74M |
| Total Debt | 13.45B | 13.07B | 10.01B | 10.11B | 10.61B | 11.08B |
| Total Liabilities | 13.63B | 13.24B | 10.59B | 10.37B | 10.74B | 11.67B |
| Stockholders Equity | 2.42B | 2.57B | 2.53B | 2.56B | 2.67B | 3.74B |
Cash Flow | ||||||
| Free Cash Flow | -142.83M | -248.88M | 205.67M | 213.27M | 325.72M | 519.18M |
| Operating Cash Flow | -142.83M | -248.88M | 205.67M | 213.27M | 325.72M | 519.18M |
| Investing Cash Flow | 75.18M | -1.66B | 178.22M | 551.75M | 509.84M | 2.55B |
| Financing Cash Flow | 467.34M | 2.11B | -521.58M | -807.94M | -956.70M | -2.95B |
Chimera Investment Technical Analysis
Negative
12.50
Price Trends
12.84
Negative
12.78
Negative
12.30
Negative
Market Momentum
-0.23
Positive
33.88
Neutral
31.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CIM, the sentiment is Negative. The current price of 12.5 is below the 20-day moving average (MA) of 12.59, below the 50-day MA of 12.84, and above the 200-day MA of 12.30, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 33.88 is Neutral, neither overbought nor oversold. The STOCH value of 31.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CIM.
Chimera Investment Risk Analysis
Chimera Investment disclosed 75 risk factors in its most recent earnings report. Chimera Investment reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Chimera Investment Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | $1.67B | 8.00 | 11.88% | 11.67% | 33.43% | 19.55% | |
56 Neutral | $925.54M | 8.35 | 7.43% | 15.75% | 2.05% | -11.87% | |
56 Neutral | $1.30B | 4.39 | 25.58% | 21.10% | 89.39% | 661.99% | |
55 Neutral | $822.32M | 6.59 | 8.88% | 16.43% | 16.63% | 96.52% | |
54 Neutral | $1.27B | -16.67 | -1.23% | 11.24% | 18.52% | 78.83% | |
49 Neutral | $1.04B | -23.55 | 2.02% | 13.12% | 10.27% | -151.66% |
* Real Estate Sector Average
CIM
Chimera Investment
11.97
0.25
2.09%
EFC
Ellington Financial
13.60
1.91
16.31%
MFA
MFA Financial
9.23
1.29
16.26%
TWO
Two Harbors
12.12
3.51
40.78%
PMT
PennyMac Mortgage
9.65
-0.70
-6.74%
ORC
Orchid Island Capital
6.56
0.74
12.75%
Chimera Investment Corporate Events
Business Operations and StrategyDividends
Chimera Investment Declares Q3 Dividends on Preferred Shares
Positive
Aug 5, 2026
On August 5, 2026, Chimera Investment Corporation’s board declared third-quarter cash dividends across all four of the REIT’s preferred stock series. Holders of the 8.00% Series A, 8.00% Series B fixed-to-floating, 7.75% Series C fixed...
Executive/Board ChangesShareholder Meetings
Chimera Investment Shareholders Approve Directors, Pay and Auditor
Positive
Jun 11, 2026
Chimera Investment Co., a real estate investment trust focused on mortgage credit and related financial assets, convened its 2026 annual meeting of stockholders on June 10, 2026, with approximately 75.65% of eligible shares represented in person o...
Dividends
Chimera Investment Reaffirms Steady Second-Quarter 2026 Dividend
Positive
Jun 11, 2026
On June 11, 2026, Chimera Investment Corporation announced that its board declared a second-quarter 2026 cash dividend of $0.45 per common share, unchanged from the first quarter and consistent with its stated plan to hold the payout steady throug...
Dividends
Chimera Investment Declares Q2 2026 Preferred Stock Dividends
Positive
May 7, 2026
On May 7, 2026, Chimera Investment Corporation’s board declared second-quarter 2026 cash dividends on four series of preferred stock, including $0.50 per share for its 8.00% Series A Cumulative Redeemable Preferred Stock and $0.6095 per shar...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.