Cherry Hill Mortgage Investment Corporation: Hold Rating for Mortgage REIT Investors

Cherry Hill Mortgage Investment Corporation is a mortgage REIT with a Hold rating from a finance expert with Bloomberg experience. The stock has upward momentum, making it a speculative bet for long-term investors.

Cherry Hill Mortgage Investment Corporation (CHMI), a mortgage real estate investment trust (REIT), has recently received a Hold rating from a seasoned finance expert with Bloomberg experience [1]. Despite the Hold rating, the stock has shown upward momentum, making it an intriguing speculative bet for long-term investors.

CHMI, a residential real estate finance company, acquires, invests in, and manages residential mortgage assets in the United States [1]. The company operates through two segments: Investments in RMBS (residential mortgage-backed securities) and Investments in Servicing Related Assets [1]. CHMI qualifies as a REIT for federal income tax purposes and generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income [1].

The mortgage REIT sector has faced challenges in 2023 due to rising interest rates, which have negatively impacted net interest income and pressured common share dividends [2]. However, CHMI has taken steps to mitigate these challenges by increasing its RMBS holdings [3].

Despite the challenges, analysts remain bullish on CHMI. According to 3 analysts, the average rating for CHMI stock is "Buy," and the 12-month stock price forecast is $5.0, which represents a 43.27% increase from the latest price [1].

In addition to its strong analyst consensus, CHMI has a history of paying dividends to its shareholders. The company recently announced dividends for its common and preferred shares for the fourth quarter of 2023 [4].

While the mortgage REIT sector faces challenges, CHMI's upward momentum, strong analyst consensus, and history of paying dividends make it an attractive speculative bet for long-term investors.

References:

[1] Stock Analysis. (n.d.). CHMI Stock Analysis. Retrieved from https://stockanalysis.com/stocks/chmi/
[2] Invezz. (2023, January 11). Cherry Hill Mortgage Investment Corporation Announces Taxable Composition of 2024 Dividends. Retrieved from https://www.invezz.com/news/stock-market-news/cherry-hill-mortgage-investment-corporation-announces-taxable-composition-of-2024-dividends/
[3] Business Wire. (2023, December 12). Cherry Hill Mortgage Investment Corporation Announces Common and Preferred Dividends for the Fourth Quarter 2023. Retrieved from https://www.businesswire.com/news/home/20231212005217/en/
[4] Seeking Alpha. (2023, October 31). Cherry Hill Mortgage Investment Corporation Internalizes Management, Terminates Management Agreement and Concludes Strategic Alternatives Review Process. Retrieved from https://seekingalpha.com/news/395965-cherry-hill-mortgage-investment-corporation-internalizes-management-terminates-management-agreement-and-concludes-strategic-alternatives-review-process