Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) saw its share price dip below its 200-day moving average during trading on November 6, 2023. The stock’s 200-day moving average stands at $2.65, with shares trading as low as $2.57 before closing at $2.6450. This decline is part of a broader trend that has raised questions among investors and analysts alike.
Analysts Adjust Ratings and Price Targets
Recent evaluations by various equity research analysts have provided mixed insights regarding Cherry Hill’s performance. Citizens JMP upgraded the company from a “market perform” rating to “outperform,” setting a target price of $2.75. Conversely, Wall Street Zen downgraded the rating from “buy” to “hold,” and Janney Montgomery Scott similarly reduced its rating from “buy” to “neutral.”
Additionally, Weiss Ratings maintained a “sell (d)” rating on the company, while Citigroup reiterated its “market outperform” rating. Currently, of the analysts covering Cherry Hill, one has issued a “Strong Buy” rating, two a “Buy” rating, two a “Hold” rating, and one a “Sell” rating. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” with a consensus target price of $3.38.
Quarterly Earnings Report and Dividend Announcement
Cherry Hill Mortgage Investment recently reported its quarterly earnings on November 6, revealing earnings per share of $0.09, which fell short of the analysts’ consensus estimate of $0.11 by $0.02. The company recorded a return on equity of 16.17% and a net margin of 14.15%, with quarterly revenue reaching $8.57 million, significantly above the projected $2.87 million.
In addition to the earnings report, the firm announced a quarterly dividend of $0.10 per share, scheduled for payment on January 30, 2024. This dividend represents an annualized payout of $0.40 and a notable yield of 15.1%. The ex-dividend date is set for December 31, 2023, and the dividend payout ratio currently stands at an extraordinary 2,000.00%.
Institutional Investors Take Positions
Recent activity among institutional investors indicates growing interest in Cherry Hill Mortgage Investment. Notably, Ritholtz Wealth Management acquired a new position valued at $66,000 in the second quarter. Other notable transactions include Vident Advisory LLC, which purchased shares worth approximately $123,000, and Hudson Bay Capital Management LP, which acquired shares valued at about $374,000.
Furthermore, Jane Street Group LLC significantly increased its stake by 262.5%, now holding 93,672 shares valued at $309,000 after acquiring an additional 67,832 shares in the last quarter. Overall, institutional investors and hedge funds collectively own 18.49% of Cherry Hill Mortgage Investment’s stock.
Cherry Hill Mortgage Investment Corporation is a real estate investment trust that specializes in acquiring, financing, and managing residential mortgage loans and related securities. Its portfolio primarily includes agency and non-agency residential mortgage loans secured by single-family homes, along with mortgage-backed securities issued or guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The company employs active portfolio management strategies aimed at generating current income and total return for its shareholders.
As market dynamics continue to evolve, stakeholders will be closely monitoring Cherry Hill Mortgage Investment’s performance and strategic moves in the coming months.
