Cherry Hill Mortgage Investment (NYSE:CHMI) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Cherry Hill Mortgage Investment (NYSE:CHMI) announced its earnings results on Monday. The real estate investment trust reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.13 by $0.02, Zacks reports. Cherry Hill Mortgage Investment had a return on equity of 17.95% and a net margin of 18.88%.The firm had revenue of $7.88 million for the quarter, compared to the consensus estimate of $10.75 million.

Cherry Hill Mortgage Investment Stock Up 13.7%

Cherry Hill Mortgage Investment stock opened at $2.74 on Tuesday. The stock has a 50-day moving average price of $2.35 and a 200 day moving average price of $2.51. The company has a market capitalization of $100.67 million, a price-to-earnings ratio of 24.91 and a beta of 0.93. Cherry Hill Mortgage Investment has a 52 week low of $2.17 and a 52 week high of $3.04.

Cherry Hill Mortgage Investment Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, June 30th were issued a dividend of $0.10 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 14.6%. Cherry Hill Mortgage Investment’s payout ratio is 363.64%.

Cherry Hill Mortgage Investment News Summary

Here are the key news stories impacting Cherry Hill Mortgage Investment this week:

• Positive Sentiment: Merger offers a higher implied value: MITT will acquire CHMI for 0.3063 MITT shares plus $0.93 in cash per CHMI share, implying approximately $3.10 per share based on MITT’s August 7 closing price. That is above CHMI’s referenced $2.74 opening price and provides a clear transaction catalyst. The deal is expected to close in the fourth quarter of 2026, subject to shareholder and regulatory approvals. MITT agrees to buy Cherry Hill
• Positive Sentiment: Quarterly earnings exceeded expectations: CHMI reported second-quarter earnings available for distribution of $0.15 per diluted share, beating the $0.13 consensus estimate and improving from $0.10 a year earlier. The company also reported $3.16 in common book value per share and paid a $0.10 quarterly dividend. Cherry Hill beats Q2 estimates
• Neutral Sentiment: MITT’s results provide transaction context: The acquiring REIT reported $0.29 in second-quarter diluted EPS, $10.00 in book value per share and a $0.24 dividend. Its $7.7 billion investment portfolio and $111.6 million of liquidity suggest a substantial platform for the combined residential mortgage REIT. TPG Mortgage Investment Trust Q2 results
• Negative Sentiment: Revenue missed estimates: CHMI’s second-quarter revenue was $7.88 million, below analysts’ $10.75 million forecast. GAAP net income was $1.3 million, or $0.04 per share, materially below the $0.15 earnings-available-for-distribution figure used in the earnings beat.
• Negative Sentiment: Fair-price review creates deal risk: Halper Sadeh LLC is investigating whether CHMI shareholders are receiving adequate consideration. Such investigations can increase legal uncertainty or pressure the companies to improve merger terms, although no change to the agreement has been announced. CHMI fair-price investigation

Hedge Funds Weigh In On Cherry Hill Mortgage Investment

A number of institutional investors have recently bought and sold shares of the business. Jane Street Group LLC boosted its holdings in shares of Cherry Hill Mortgage Investment by 262.5% in the 1st quarter. Jane Street Group LLC now owns 93,672 shares of the real estate investment trust’s stock valued at $309,000 after acquiring an additional 67,832 shares during the last quarter. Envestnet Asset Management Inc. purchased a new position in shares of Cherry Hill Mortgage Investment during the second quarter worth $45,000. Glenview Trust co acquired a new position in Cherry Hill Mortgage Investment during the second quarter valued at $34,000. Hudson Bay Capital Management LP acquired a new position in Cherry Hill Mortgage Investment during the second quarter valued at $374,000. Finally, Vident Advisory LLC lifted its position in Cherry Hill Mortgage Investment by 58.2% during the second quarter. Vident Advisory LLC now owns 59,061 shares of the real estate investment trust’s stock valued at $161,000 after purchasing an additional 21,731 shares during the period. 18.49% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

CHMI has been the subject of several recent analyst reports. Weiss Ratings reissued a “sell (d)” rating on shares of Cherry Hill Mortgage Investment in a report on Wednesday, June 24th. Wall Street Zen downgraded shares of Cherry Hill Mortgage Investment from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 1st. Finally, B. Riley Financial lowered shares of Cherry Hill Mortgage Investment to a “neutral” rating in a research report on Monday. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $3.00.

Cherry Hill Mortgage Investment Company Profile

Cherry Hill Mortgage Investment Corporation is a real estate investment trust that focuses on acquiring, financing and managing residential mortgage loans and mortgage-related securities. The company’s portfolio consists primarily of agency and non-agency residential mortgage loans secured by single-family residences, together with mortgage-backed securities issued or guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.

CHMI employs active portfolio management strategies intended to generate current income and total return for its shareholders.