Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) saw its stock price dip below the critical 200-day moving average during trading on January 30, 2024. The stock, which has a 200-day moving average of $2.59, reached a low of $2.56 before closing at $2.5970 with a trading volume of 165,251 shares. This decline raises concerns among investors regarding the company’s market performance.
Analyst Ratings and Market Response
Recent reports from various brokerages have added to the scrutiny of Cherry Hill’s stock. On December 29, 2023, Weiss Ratings reiterated a “sell (d)” rating on CHMI shares. Conversely, Citizens JMP raised its price target from $2.75 to $3.00 and assigned a “market outperform” rating on January 22, 2024. The same day, Credit Suisse Group set a price target of $3.00 for the stock, while Citigroup maintained an “outperform” rating. Currently, two analysts rate the stock as a Buy, one as a Hold, and one as a Sell, leading to a consensus rating of “Hold” with an average target price of $3.00, according to data from MarketBeat.
Dividend Announcement and Institutional Investments
In addition to market fluctuations, Cherry Hill Mortgage Investment announced a quarterly dividend of $0.10 per share, which was paid out on January 30, 2024, to shareholders of record on December 31, 2023. This represents an annualized dividend of $0.40 and a yield of 15.4%. The ex-dividend date was also December 31, 2023. Notably, the company’s dividend payout ratio stands at an astonishing 2,000.00%, indicating a significant commitment to returning value to shareholders.
Several large investors have recently adjusted their positions in Cherry Hill. Among them, XTX Topco Ltd purchased a new stake valued at approximately $27,000 in the fourth quarter. Similarly, Naviter Wealth LLC acquired a stake valued at around $29,000, while Glenview Trust Co. and Envestnet Asset Management Inc. also entered positions in the second quarter valued at approximately $34,000 and $45,000, respectively. Overall, institutional investors and hedge funds currently own 18.49% of the stock.
Cherry Hill Mortgage Investment Corporation operates as a real estate investment trust, focusing on acquiring, financing, and managing residential mortgage loans and related securities. Its portfolio mainly consists of agency and non-agency residential mortgage loans secured by single-family residences, alongside mortgage-backed securities issued or guaranteed by entities such as 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 the company navigates these market developments, investors will be closely watching both its stock performance and upcoming financial reports.
