Chimera Investment Corporation (CIM)
Chimera Investment Corporation (CIM) Q4 2024 Earnings Call Transcript
Chimera Investment Corporation (CIM) Q4 2024 Earnings Call Transcript
Chimera Investment (CIM) Q4 Earnings Beat Estimates
Chimera Investment (CIM) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.39 per share a year ago.
A Preferred Share Worth Scrutinizing From Chimera
CIM-A's 8% coupon rate and 8.6% strip yield are overshadowed by limited upside and better alternatives, making it an unattractive investment above $23.20. The potential upside for CIM-A is capped at around 7.7%, with low likelihood of being called unless interest rates drop significantly with the economy remaining very strong. Baby bonds from Chimera Investment Corporation offer superior benefits, including mandatory interest payments, higher capital stack priority, and over 9% yield to maturity.
Preferred Stock Of Chimera Is Reasonably Valued, Despite Its Outsized Return
I recommended Chimera Investment Corporation's preferred stock for its 10% dividend yield and wide margin of safety, resulting in a 46% total return since April 2023. With inflation cooling and interest rates decreasing, Chimera's preferred stock remains attractive, offering a floating yield of 10.1%. Chimera's preferred dividend is safer than its common dividend, supported by historical resilience even during severe economic downturns.
Chimera Investment: Turnaround In Progress
The third quarter showed positive financial metrics, but earnings did not cover the dividend, reflecting ongoing challenges. Chimera's recent acquisition of an alternative asset manager and leadership changes signal a potential turnaround, but integration risks remain. With a favorable macro environment and the potential for future dividend increases, the Company has potential.
Chimera Investment Corporation (CIM) Q3 2024 Earnings Call Transcript
Chimera Investment Corporation (NYSE:CIM ) Q3 2024 Earnings Conference Call November 6, 2024 8:30 AM ET Company Participants Victor Falvo - Head of Capital Markets and IR Phil Kardis - President and CEO Subra Viswanathan - CFO Dan Thakkar - CIO Conference Call Participants Trevor Cranston - Citizens JMP Doug Harter - UBS Francesco Labetti - KBW Jake Katsikis - BTIG Operator Greetings, and welcome to the Chimera Investment Corporation Third Quarter Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.
Chimera Investment (CIM) Q3 Earnings and Revenues Miss Estimates
Chimera Investment (CIM) came out with quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.39 per share a year ago.
Chimera: 10% Yield, 2 Dividend Hikes, 29% BV Discount
Chimera Investment Corporation completed a 1-for-3 stock split and benefits from the central bank's push for lower short-term interest rates. CIM raised its dividend twice in 2024, resulting in a leading dividend yield of 9.8%, and covered its dividend well with distributable earnings. Chimera Investment's stock trades at a 29% discount to book value, presenting a high margin of safety for passive income investors.
Is the Options Market Predicting a Spike in Chimera Investment (CIM) Stock?
Investors need to pay close attention to Chimera Investment (CIM) stock based on the movements in the options market lately.
Chimera Preferreds: Positioning With Consideration For Pace And Extent Of Interest Rate Change
Fed speculation leads to increased market volatility and interest rate reductions. CIM preferred stocks pricing remains stable despite bond market rally. Active monitoring and readiness for interest rate changes can lead to advantageous investment decisions.
Chimera Investment (CIM) Surpasses Q2 Earnings and Revenue Estimates
Chimera Investment (CIM) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.36 per share a year ago.
Chimera Investment: Great Value, Extreme Discount To Book
The market currently undervalues Chimera's common stock by an enormous margin, trading it at price-to-book ratios that are far below its peers. The Company's track record is strong, showing positive EPS in 9 of the last 10 years, and the one exception, 2022, was due to interest rate challenges that are unlikely to recur. Chimera's loan portfolio is very strong, consisting nearly entirely of residential mortgage loans and related investments. Overall, Chimera's portfolio experiences very low loss rates, which seem unlikely to increase.
