CIM Should I Buy
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Chimera Investment Corp is not a strong buy at this moment for a beginner investor with a long-term horizon. Despite positive dividend growth and a high forward yield, the stock's recent analyst downgrades, bearish moving averages, and weaker relative ROE compared to peers suggest limited upside potential. Holding the stock or exploring other opportunities with better growth and valuation metrics is recommended.
The MACD is positive and expanding, indicating bullish momentum. However, the RSI is neutral at 73.764, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5), suggesting the overall trend is not strongly favorable. The stock is trading near its resistance level (R1: 13.326), which may limit immediate upside potential.
Quarterly dividend increased by 21.6% to $0.45 per share, with a forward yield of 14.63%.
Q4 2025 non-GAAP EPS of $0.53 exceeded expectations.
Revenue increased by 20.69% YoY in Q4 2025.
RBC Capital downgraded the stock to Sector Perform with a $13 price target, citing lower expected ROE compared to peers.
Net income and EPS dropped significantly YoY in Q4 2025 (-103.86% and -103.40%, respectively).
Bearish moving averages and limited short-term price growth potential (-0.51% next day, 0.35% next week).
In Q4 2025, revenue increased by 20.69% YoY to $243.26 million, and gross margin improved slightly to 34.16%. However, net income dropped by 103.86% YoY to $6.5 million, and EPS fell by 103.40% YoY to $0.07, indicating profitability challenges despite revenue growth.
RBC Capital downgraded the stock to Sector Perform from Outperform, with a price target of $13 (up from $6), citing lower ROE expectations for 2026 compared to peers. UBS maintains a Buy rating but lowered its price target to $15.50 from $16.
