Chimera Investment Corporation presents a complex picture for investors, marked by a recent share price rebound, underwhelming quarterly results, and significant strategic moves. The interplay of these factors raises questions about the mortgage REIT’s near-term trajectory and the potential impact of its latest acquisition.
A Strategic Acquisition for Future Growth
A pivotal development for Chimera was the completion of its purchase of HomeXpress Mortgage Corp on October 1, 2025. This strategic acquisition is designed to diversify the company’s portfolio and drive earnings growth into 2026. By integrating HomeXpress’s non-QM loan platform, Chimera aims to unlock cross-selling opportunities and gain the capability to directly source and securitize loans.
Share Price Resilience Amid Earnings Disappointment
Despite recent financial performance, Chimera’s equity has shown strength on the market. Over a two-week period, the stock climbed 8.8%. In the past week alone, shares advanced 0.78% to $12.95, accompanied by higher trading volume. This upward movement contrasts sharply with the company’s third-quarter 2025 figures. For that period, Chimera reported a GAAP loss of $0.27 per share. Its book value stood at $20.24 per common share, with both metrics falling short of analyst expectations.
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Insider Activity and Institutional Sentiment
Significant stock retentions by executives for tax purposes occurred in late November and early December. The Chief Executive Officer retained over 102,000 shares, the Chief Financial Officer held approximately 31,675, and the Chief Legal Officer kept 2,586 shares. These transactions are linked to the settlement of a stock compensation plan. Activity among institutional investors has been mixed. While Pale Fire Capital SE nearly halved its position, other firms like CWM LLC substantially increased their holdings. The average analyst rating on the stock remains a “Hold,” with a price target of $15.25.
The upcoming test for the company will be the payment of its quarterly preferred dividends on December 30. Moving forward, the successful integration of HomeXpress is viewed as crucial for Chimera to improve its recent operational performance.
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