What’s Chimera Investment Corporation Upside After Today’s Bearish Options Activity?

 What's Chimera Investment Corporation Upside After Today's Bearish Options Activity?

In today’s session Chimera Investment Corporation (CIM) recorded an unusually high (665) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the March, 2017 put, expecting serious CIM decrease. With 665 contracts traded and 4494 open interest for the Mar, 17 contract, it seems this is a quite bearish bet. The option with symbol: CIM170317P00015000 closed last at: $0.95 or 46.2% up. Chimera Investment Corporation (NYSE:CIM) has risen 9.96% since March 3, 2016 and is uptrending. It has outperformed by 1.62% the S&P500.

Analysts await Chimera Investment Corporation (NYSE:CIM) to report earnings on November, 1. They expect $0.56 EPS, up 12.00% or $0.06 from last year’s $0.5 per share. CIM’s profit will be $105.05M for 6.62 P/E if the $0.56 EPS becomes a reality. After $0.51 actual EPS reported by Chimera Investment Corporation for the previous quarter, Wall Street now forecasts 9.80% EPS growth.

Chimera Investment Corporation (NYSE:CIM) Ratings Coverage

Out of 7 analysts covering Chimera Investment (NYSE:CIM), 2 rate it a “Buy”, 1 “Sell”, while 4 “Hold”. This means 29% are positive. Chimera Investment has been the topic of 14 analyst reports since August 12, 2015 according to StockzIntelligence Inc. Deutsche Bank maintained the shares of CIM in a report on Tuesday, August 9 with “Hold” rating. The firm has “Hold” rating by Deutsche Bank given on Wednesday, August 12. On Tuesday, August 9 the stock rating was maintained by Wood with “Market Perform”. The stock of Chimera Investment Corporation (NYSE:CIM) earned “Market Perform” rating by Wells Fargo on Monday, January 18. The stock has “Underperform” rating given by Wells Fargo on Wednesday, May 4. The firm earned “Market Perform” rating on Friday, January 15 by Wells Fargo. As per Friday, August 14, the company rating was maintained by Wood. The stock has “Equal-Weight” rating given by Barclays Capital on Tuesday, October 13. The firm earned “Buy” rating on Wednesday, March 23 by Nomura. The stock has “Buy” rating given by Zacks on Wednesday, August 12.

According to Zacks Investment Research, “Chimera Investment Corporation are a newly-formed specialty finance company that will invest in residential mortgage loans, residential mortgage-backed securities, real estate-related securities and various other asset classes and intends to elect and qualify to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. Chimera Investment Corporation will be externally managed by Fixed Income Discount Advisory Company, a wholly-owned subsidiary of Annaly.”

Insitutional Activity: The institutional sentiment is 0.25 in Q2 2016. Its the same as in 2016Q1. The ratio is flat, as 2 funds sold all Chimera Investment Corporation shares owned while 2 reduced positions. only 1 funds bought stakes while 0 increased positions. They now own 972,918 shares or 40.73% less from 1.64 million shares in 2016Q1.
Capital Advsr Ltd Liability Corporation, a Georgia-based fund reported 67,420 shares. Balasa Dinverno And Foltz Limited Liability holds 0.14% of its portfolio in Chimera Investment Corporation (NYSE:CIM) for 49,362 shares. Moreover, Nfc Investments Limited Company has 6.32% invested in Chimera Investment Corporation (NYSE:CIM) for 856,136 shares.

Insider Transactions: Since September 9, 2016, the stock had 1 buy, and 0 selling transactions for $37,110 net activity. On Friday, September 9 Yarlagadda Choudhary bought $37,110 worth of the stock or 2,305 shares.

Chimera Investment Corporation is a real estate investment trust. The company has a market cap of $2.78 billion. The Firm is primarily engaged in the business of investing, on a leveraged basis, in a diversified portfolio of mortgage assets, including Agency residential mortgage-backed securities , Non-Agency RMBS, Agency commercial mortgage backed securities (CMBS), residential mortgage loans and real estate related securities. It has a 12.34 P/E ratio. The mortgage backed securities (MBS) and real estate-related securities the Company purchases may include investment-grade and non-investment grade classes, including the BB-rated, B-rated and non-rated classes.

CIM Company Profile

Chimera Investment Corporation, incorporated on June 1, 2007, is a real estate investment trust. The Firm is primarily engaged in the business of investing, on a leveraged basis, in a diversified portfolio of mortgage assets, including Agency residential mortgage-backed securities (RMBS), Non-Agency RMBS, Agency commercial mortgage backed securities (CMBS), residential mortgage loans and real estate related securities. The mortgage backed securities (MBS) and real estate-related securities the Company purchases may include investment-grade and non-investment grade classes, including the BB-rated, B-rated and non-rated classes.

More notable recent Chimera Investment Corporation (NYSE:CIM) news were published by: Seekingalpha.com which released: “Chimera Investment Corp.: Don’t Be Silly, Take Some Profits” on August 07, 2016, also Seekingalpha.com with their article: “Chimera Investment Corp.: Taking Some Profits?” published on July 21, 2016, Seekingalpha.com published: “Chimera Investment Corp: A Potential High-Yield Ticking Time Bomb” on August 08, 2016. More interesting news about Chimera Investment Corporation (NYSE:CIM) were released by: Businesswire.com and their article: “CHIMERA INVESTMENT CORPORATION RELEASES 2nd QUARTER 2016 EARNINGS” published on August 03, 2016 as well as Seekingalpha.com‘s news article titled: “Chimera Investment Corporation: Looking Into Economic Book Value” with publication date: June 29, 2016.

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