Cherry Hill Mortgage Investment Corporation
- Open
- 2.94
- Day high
- 2.94
- Day low
- 2.93
- Prev close
- 2.94
- Volume
- 30K
- Mkt cap
- $108M
- P/E (TTM)
- 16.6
- EPS (TTM)
- $0.18
- P/B
- 0.5
- P/S
- 1.0
- Yield
- 13.61%
- Per share
- $0.40
Cherry Hill Mortgage Investment Corporation (CHMI) is a Real Estate company listed on NYSE. The stock is up 3% over the past year. Drillr has 1 published research article covering CHMI.
Cherry Hill Mortgage Investment Corporation (CHMI) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CHMI earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 10, 2026 | $0.13 | $0.15 | +15.4% | $8M | -26.7% |
| May 7, 2026 | $0.12 | $0.14 | +16.7% | $5M | -55.0% |
| Feb 25, 2026 | $0.11 | $0.11 | +0.0% | $12M | +380.0% |
| Nov 6, 2025 | $0.11 | $0.09 | -18.2% | $9M | +249.9% |
| Aug 7, 2025 | $0.12 | $0.10 | -16.7% | $39M | +1240.7% |
| Mar 6, 2025 | $0.10 | $0.10 | +0.0% | $19M | +1145.3% |
| Aug 8, 2024 | $0.15 | $0.08 | -46.7% | $7M | -43.3% |
| Mar 7, 2024 | $0.20 | $0.17 | -15.0% | $18M | +25.4% |
| Nov 2, 2023 | $0.16 | $0.16 | +0.0% | $21M | +43.5% |
| Aug 3, 2023 | $0.21 | $0.16 | -23.8% | $6M | -4.0% |
| Mar 7, 2023 | $0.28 | $0.24 | -14.3% | $-31M | -325.0% |
| Nov 2, 2022 | $0.29 | $0.26 | -10.3% | $46M | +284.7% |
CHMI insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 15, 2026 | Mercer Robert C JRdirector | Grant | 42,017 | — |
| Jun 15, 2026 | Murin Joseph Jdirector | Grant | 42,017 | — |
| Jun 15, 2026 | Hoffman Dale Sdirector | Grant | 42,017 | — |
| Jun 15, 2026 | Cook Sharon Ldirector | Grant | 42,017 | — |
| Jun 3, 2026 | Patel Apekshaofficer: Chief Financial Officer | Option | 11,000 | — |
| Jun 3, 2026 | Patel Apekshaofficer: Chief Financial Officer | Tax | 3,449 | $2.42 |
| Apr 23, 2026 | Patel Apekshaofficer: Chief Financial Officer | Grant | 75,758 | — |
| Apr 23, 2026 | Evans Julianofficer: Chief Investment Officer | Grant | 104,167 | — |
| Apr 23, 2026 | Lown Jeffrey Bdirector, officer: President and CEO | Grant | 170,455 | — |
| Feb 10, 2026 | Healey Susan Sofficer: General Counsel & Secretary | Grant | 24,414 | — |
| Dec 11, 2025 | Cook Sharon Ldirector | Sell | 7,427 | $2.49 |
| Jul 2, 2025 | Cook Sharon Ldirector | Grant | 36,630 | — |
| Jul 2, 2025 | Mercer Robert C JRdirector | Grant | 36,630 | — |
| Jul 2, 2025 | Hoffman Dale Sdirector | Grant | 36,630 | — |
| Jul 2, 2025 | Murin Joseph Jdirector | Grant | 36,630 | — |
Source: CHMI SEC Form 4 filings, latest Jun 15, 2026. For informational purposes only — not investment advice.
See the full CHMI insider & 13F page →Cherry Hill Mortgage Investment Corporation company profile
Overview
Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) is a residential real estate finance company that was incorporated in 2012 and went public in October 2013. Based in Farmingdale, New Jersey, the company operates as a mortgage real estate investment trust (REIT) that specializes in acquiring, investing in, and managing residential mortgage assets across the United States. The company completed a significant strategic transition in November 2024 by internalizing its management structure, eliminating external management fees and potential conflicts of interest while improving operational efficiency and transparency.
Business
Cherry Hill Mortgage Investment Corporation operates in the mortgage REIT sector, which is a specialized segment of the real estate investment trust industry focused on mortgage-related investments rather than direct property ownership. The company's business is built around two primary investment segments that together form its core portfolio strategy. The company's Mortgage Servicing Rights (MSR) Portfolio represents approximately 44-46% of its equity capital and consists of rights to service residential mortgages with an underlying unpaid principal balance of around $17 billion. Mortgage servicing rights are financial assets that represent the right to collect monthly payments from homeowners, manage escrow accounts, and handle various administrative duties related to mortgage loans. When banks or other lenders originate mortgages, they often sell these servicing rights to specialized companies like Cherry Hill, creating a steady stream of fee income. The MSR portfolio generates revenue through servicing fees (typically 0.25% to 0.50% of the outstanding loan balance annually) and benefits when homeowners make payments slower than expected, as this extends the income stream. The Residential Mortgage-Backed Securities (RMBS) Portfolio comprises approximately 38-39% of equity capital, with holdings of around $733-866 million in government-sponsored enterprise (GSE) securities. These are bonds backed by pools of residential mortgages that have been securitized and often carry implicit or explicit government guarantees through agencies like Fannie Mae and Freddie Mac. The RMBS portfolio generates income through the net interest spread - the difference between the interest earned on the mortgage securities and the cost of the borrowed funds used to purchase them. The company typically achieves net interest spreads of 2.9% to 3.8% on this portfolio. The company also maintains smaller positions in servicing-related assets and other mortgage investments, but these two segments represent the vast majority of its invested capital and revenue generation.
Revenue model
Cherry Hill generates revenue through two distinct but complementary business models tied to its dual portfolio structure. The MSR portfolio operates on a fee-based servicing model, where the company earns monthly servicing fees as a percentage of the outstanding mortgage balances under management. These fees typically range from 0.25% to 0.50% annually of the unpaid principal balance, providing relatively predictable cash flows as long as borrowers continue making payments and don't refinance their mortgages. The RMBS portfolio operates on a net interest margin model, similar to traditional banking. Cherry Hill borrows money at short-term rates through repurchase agreements and other financing mechanisms, then invests these funds in longer-term mortgage securities that pay higher yields. The company profits from the spread between what it earns on the securities and what it pays to borrow the money. Recent net interest spreads have ranged from 2.9% to 3.8%, depending on market conditions and portfolio composition. The company's profitability is significantly influenced by several key factors. Interest rate volatility represents the primary risk, as rising rates can reduce the value of both MSRs and RMBS while potentially increasing borrowing costs. Prepayment speeds critically impact both portfolios - when homeowners refinance or pay off mortgages early, MSR values decline due to shortened cash flow streams, while RMBS face reinvestment risk at potentially lower yields. The company actively hedges these risks but cannot eliminate them entirely. Credit spreads in the mortgage market directly affect RMBS valuations and the company's ability to deploy capital profitably. Wider spreads can create buying opportunities but also reduce the value of existing holdings. The company's cost of financing, primarily through repurchase agreements, fluctuates with short-term interest rates and market conditions, directly impacting net interest margins. Finally, regulatory changes affecting GSE policies, mortgage market structure, or REIT taxation could materially impact the business model and profitability.
Competitive moat
Cherry Hill Mortgage Investment Corporation operates in a highly competitive and commoditized sector with limited sustainable competitive advantages. The mortgage REIT industry is characterized by relatively low barriers to entry, as the primary requirements are access to capital and basic expertise in mortgage markets rather than proprietary technology or unique market positions. The company's modest competitive positioning stems from several factors. Scale limitations represent a significant challenge, as Cherry Hill's $1.4 billion in total assets pale in comparison to larger mortgage REITs that can achieve better financing terms, more diversified portfolios, and greater operational efficiencies. The company's management expertise in navigating complex interest rate and prepayment risks provides some differentiation, particularly following the recent internalization that eliminated external management conflicts, but this expertise is not unique or difficult to replicate in the industry. The regulatory framework governing mortgage REITs provides some structural protection through REIT tax advantages, but these benefits are available to all qualifying competitors. The company's focus on agency RMBS offers some stability through government backing, but also limits return potential compared to more specialized strategies. Primary competitive threats come from larger, better-capitalized mortgage REITs that can outbid Cherry Hill for attractive assets and achieve superior financing terms. Interest rate volatility poses an existential risk to the business model, as sustained periods of rising rates or yield curve inversions can render the spread-based business model unprofitable. Additionally, technological disruption in mortgage origination and servicing could reduce the value of traditional MSR assets, while potential GSE reform could fundamentally alter the agency RMBS market that forms the core of the company's strategy. The company's competitive moat is therefore quite narrow, relying primarily on management execution and tactical positioning rather than sustainable structural advantages.
Risks & safety
Cherry Hill presents a moderate to high-risk investment profile with several concerning financial metrics, though some stabilizing factors provide partial protection. **Solvency and Liquidity:** - Debt-to-equity ratio of 0.66x appears manageable but masks higher effective leverage through repurchase agreements - Financial leverage of 5.2-5.3x represents significant risk in volatile interest rate environments - Unrestricted cash of $47 million provides modest liquidity buffer - Negative free cash flow of -$4.7 million in 2024 raises sustainability concerns - Book value declined from $4.02 to $3.58 per share in recent quarters, indicating asset value erosion **Valuation Metrics:** - Price-to-book ratio of 0.46x suggests potential undervaluation or justified discount due to risks - Highly volatile earnings make P/E ratios unreliable (ranging from negative to 35x) - Current price of $2.94 represents significant discount to recent book values **Other Considerations:** - REIT structure requires 90% dividend distribution, limiting capital retention flexibility - Interest rate sensitivity creates substantial mark-to-market volatility - Small market cap of $97 million limits institutional investor interest and liquidity
Recent development
Cherry Hill has undergone significant strategic evolution over the past two years, with the most transformative change being the internalization of management completed in November 2024. This strategic pivot eliminated the external management structure that had created potential conflicts of interest and high fees, with management projecting annual cost savings of $1.1-1.6 million starting in 2025. The internalization represents a fundamental shift toward improved operational efficiency and alignment of management incentives with shareholder interests. The company has also strategically repositioned its portfolio allocation in response to changing market conditions. Management has increasingly favored agency RMBS over MSR investments due to better risk-adjusted returns in the current interest rate environment, with RMBS now representing approximately 39% of equity capital compared to 44% for MSRs. This shift reflects tactical flexibility in capital deployment based on relative value opportunities. Risk management enhancement has been a consistent focus, with the company maintaining conservative financial leverage around 5.2-5.3x and holding substantial cash reserves of $47-50 million. The company has also implemented sophisticated hedging strategies to manage interest rate and prepayment risks, though these cannot eliminate all exposure to market volatility. Recent capital management initiatives include selective use of an at-the-market equity program, raising $11.8 million in 2023, and opportunistic repurchases of Series B preferred shares totaling $6 million. The company has maintained its dividend payments while carefully managing the balance between distributions and capital preservation in volatile market conditions.
CHMI company profile · for informational purposes only — not investment advice.
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