CHMI Should I Buy
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Cherry Hill Mortgage Investment Corp (CHMI) is not a strong buy at the moment for a beginner, long-term investor with $50,000-$100,000 available. While the company has positive aspects such as a strong dividend strategy and improved net income, the declining revenue, lack of significant trading trends, and neutral technical indicators suggest limited upside potential in the short term. Additionally, no strong proprietary trading signals or significant catalysts are present to justify an immediate buy decision.
The MACD is slightly positive but contracting, RSI is neutral at 48.131, and moving averages are converging, indicating no clear trend. The stock is trading near its pivot level of 2.66, with support at 2.588 and resistance at 2.732. Overall, technical indicators suggest a neutral trend with no strong buy signal.
The company declared a common stock dividend of $0.10 per share for Q1 2026, along with preferred stock dividends, reflecting a commitment to sustainable returns. Additionally, the net income increased significantly by 201.97% YoY, and EPS rose by 158.62% YoY in Q4 2025.
Revenue dropped by 25.86% YoY, and gross margin fell to 0, down 100% YoY, indicating challenges in operational efficiency. There are no significant trading trends from hedge funds or insiders, and no recent congress trading data is available.
In Q4 2025, revenue decreased by 25.86% YoY to $26.87 million, while net income surged by 201.97% YoY to $27.39 million. EPS rose by 158.62% YoY to 0.75, but gross margin dropped to 0, down 100% YoY, indicating a mixed financial performance.
Citizens raised the price target to $3 from $2.75 and maintained an Outperform rating. Analysts expect stable to modestly higher book values for Credit MREITs, supported by favorable market conditions such as a steepened yield curve and tightened spreads.
