B.Riley FBR analyst Timothy P. Hayes reiterated a Buy rating on Cherry Hill Mortgage (CHMI) today and set a price target of $15. The company’s shares closed last Monday at $12.09, close to its 52-week low of $11.81.
Hayes noted:
“We reiterate our Buy rating and $15 price target on shares of Investment (CHMI) following the announcements of: (1) an 18% reduction in the quarterly dividend, which was in line with our expectations; and (2) a $10M share-repurchase program. 2Q19 earnings, management noted that it was expecting to cut its $0.49/share quarterly dividend by 15% to 20% in 3Q19 to reflect weaker earnings power as a result of accelerating prepayment speeds and higher pay-ups for prepay protected collateral. We believe the new $0.40/share quarterly dividend is set at a level that reflects these headwinds, which should continue to persist but somewhat moderate as we enter seasonally weaker mortgage banking months.”
According to TipRanks.com, Hayes is a 4-star analyst with an average return of 5.5% and a 69.0% success rate. Hayes covers the Financial sector, focusing on stocks such as Fidus Investment Corporation, Ready Capital Corporation, and Saratoga Investment Corp.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Cherry Hill Mortgage with a $15 average price target.
See today’s analyst top recommended stocks >>
Based on Cherry Hill Mortgage’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $26.72 million. In comparison, last year the company had a net profit of $13.67 million.
Based on the recent corporate insider activity of 8 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CHMI in relation to earlier this year.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Cherry Hill Mortgage Investment Corp. is a real estate finance company, which acquires, invests in and manages a portfolio of excess mortgage servicing rights. The company operates through the following segments: Investments in RMBS, Investments in Servicing Related Assets and All Other segment.