Cherry Hill Mortgage Investment Corporation (CHMI) Shares: Cheap or Risky?

Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) saw a downside of -0.11% to close Friday at $8.87 after subtracting -$0.01 on the day. The 5-day average trading volume is 352,340 shares of the company’s common stock. It has gained $9.55 in the past week and touched a new high 1 time within the past 5 days. An average of 234,950 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 200,750.

CHMI’s 1-month performance is -2.31% or -$0.21 on its low of $8.79 reached on 10/01/21. The company’s shares have touched a 52-week low of $8.31 and high of $10.68, with the stock’s rally to the 52-week high happening on 06/09/21. YTD, CHMI has lost -2.95% or -$0.27 and has reached a new high 15 times. However, the current price is down -16.91%% from the 52-week high price.

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Insider Transactions

On Nov 14, 322 days have gone by since the last insider trading activity for Cherry Hill Mortgage Investment Corporation (CHMI). Lowrie Regina (Director) most recently sold 11,186 shares at $8.92 per share on Nov 14. This transaction cost the insider $99,779.

Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 27.79 and a low of 2.329. CHMI stock has a beta of 1.27. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 3.11 while the price-to-book (PB) in the most recent quarter is 0.90, with the price to cash flow ratio at 4.84.

Cherry Hill Mortgage Investment Corporation pays an annual dividend of $1.08 per share. Its dividend yield is 12.18% and the payout ratio is 238.70%. CHMI paid $0.27 a share compared with prior rate of $0.27, down 0.0% from last year’s. The company has boosted its dividend for the last 1 consecutive years with the latest dividend decrease of $0.13 reported on Thursday June 18 2020. Measured over the last 3 years, the Dividend has been growing by -38.27% yearly.

It is projected that Cherry Hill Mortgage Investment Corporation’s next ex-dividend date will be on 30-Dec. CHMI is expected to distribute $0.27 as its next dividend.

As well, the company’s long term debt to equity for the quarter ending June 29 was 0.80, while the total debt to equity was 6.11. In terms of profitability, the gross margin trailing 12 months is 45.80%. The firm’s gross profit as reported stood at $69.14 million against revenue of $32.7 million.

The effectiveness of a company’s management is also important for investors when it comes to determining the potential profitability of the investment. Cherry Hill Mortgage Investment Corporation’s return on assets over the past 12 months stands at 0.50%, while its return on equity (ROE) trailing 12 months is 4.10%. In comparison, the average ROE for the broader industry over the past year is 4.65.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected CHMI to announce $0.26 per share in earnings in its latest quarter, but it posted $0.28, representing a 7.70% surprise. EBITDA for the quarter stood at more than $18.1 million. CHMI stock balance sheet for the quarter ending June 29 shows that, with total debt at $1.03 billion

Technical Picture

Let’s look briefly at Cherry Hill Mortgage Investment Corporation (CHMI) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 01 October was 33.30% to suggest the stock is trending Neutral, with historical volatility in this time period at 23.39%.

The stock’s 5-day moving average is $9.09, reflecting a -5.84% or -$0.55 change from its current price. CHMI is currently trading -3.06% above its 20-day SMA, -5.34% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by -3.90% and -7.80% respectively.

Stochastic %K and %D was 7.59% and 26.62% and the average true range (ATR) pointed at 0.17. The RSI (14) points at 38.28%, while the 14-day stochastic is at 10.53% with the period’s ATR at 0.16. The stock’s 9-day MACD Oscillator is pointing at -0.29 and -0.26 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Cherry Hill Mortgage Investment Corporation (NYSE: CHMI), JMP Securities downgraded it to a Mkt perform rating. They previously had a Mkt outperform rating on the stock.

What is CHMI’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $10.50 and a high of $12.00, with their median price target at $11.25. Looking at these predictions, the average price target given by analysts is for Cherry Hill Mortgage Investment Corporation (CHMI) stock is $11.25.


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