Jeffrey B. Lown, President and Director of Cherry Hill Mortgage (NYSE:CHMI) Investment Corp (NYSE:CHMI), recently acquired 10,000 shares of the company’s common stock, according to a recent SEC filing. The purchase, made on November 22, was valued at approximately $25,780, with each share priced at $2.578. This transaction increases Lown's total holdings to 40,128 shares, underscoring his continued investment in the real estate investment trust. Cherry Hill Mortgage, headquartered in Tinton Falls, NJ, focuses on investing in residential mortgage assets.
In other recent news, Cherry Hill Mortgage Investment Corporation reported a net loss of $14.8 million, or $0.49 per share, in the third quarter of 2024. The company also declared earnings available for distribution at $2.5 million, or $0.08 per share. These results were impacted by special committee expenses of $1.4 million. Despite these figures, Cherry Hill announced a dividend of $0.15 per common share, reflecting the company's stability amid declining U.S. 10-year Treasury yields and a rate cut cycle initiated by the Federal Reserve.
The mortgage market showed signs of improvement, and Cherry Hill's portfolio remained stable, with a focus on agency RMBS and careful hedge strategy adjustments in response to macroeconomic conditions. The company plans to allocate capital towards agency RMBS and adjust hedge strategies in response to macroeconomic shifts. However, management has expressed caution about extending leverage, which increased from 4.9 to 5.3.
The company's book value per share decreased to $4.02 from $4.15, and an estimated decline in book value of 4% to 5% for the quarter was noted as of early October. Investors will likely monitor Cherry Hill's adaptability to the evolving macroeconomic conditions in the upcoming quarters.
InvestingPro Insights
Jeffrey B. Lown's recent acquisition of Cherry Hill Mortgage Investment Corp (NYSE:CHMI) shares aligns with several key insights from InvestingPro. The company's stock is currently trading near its 52-week low, with a price-to-book ratio of 0.63 as of the last twelve months ending Q3 2024. This valuation metric suggests the stock may be undervalued relative to its book value, potentially supporting Lown's decision to increase his stake.
InvestingPro Tips indicate that CHMI pays a significant dividend to shareholders, with a current dividend yield of 23.62%. This high yield could be attractive to income-focused investors, though it's important to note that the company has maintained dividend payments for 12 consecutive years, demonstrating a commitment to shareholder returns despite recent challenges.
The stock's recent performance has been challenging, with a one-month price total return of -25.51% and a year-to-date return of -28.98%. However, analysts anticipate sales growth in the current year and expect the company to return to profitability. These forward-looking projections may have influenced Lown's decision to invest further in the company.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for CHMI, providing a deeper understanding of the company's financial health and market position.
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