Update shared on 10 Dec 2025
Fair value Decreased 6.45%Analysts have trimmed their price target on Chimera Investment by approximately 6.5 percent to about 14.50 dollars, citing a lower required discount rate, along with sharply upgraded expectations for revenue growth and profit margins that they believe are now adequately reflected in a reduced future earnings multiple.
What's in the News
- Completed a multi year share repurchase program announced in March 2020, retiring 12,815,166 shares in total, equivalent to 16.87 percent of shares outstanding (Key Developments)
- Total capital deployed under the buyback reached 105.88 million dollars, signaling a sustained focus on shareholder returns over the life of the program (Key Developments)
- No shares were repurchased between July 1, 2025 and September 30, 2025 under the existing authorization, indicating a pause in buyback activity during the latest quarter (Key Developments)
Valuation Changes
- Fair Value: Reduced from 15.50 dollars to 14.50 dollars, a modest downward revision to intrinsic value estimates.
- Discount Rate: Lowered significantly from approximately 12.07 percent to about 9.18 percent, reflecting a reduced perceived risk profile or cost of capital.
- Revenue Growth: Upgraded sharply from roughly 6.96 percent to about 32.83 percent, indicating meaningfully more optimistic top line expectations.
- Net Profit Margin: Increased from around 44.02 percent to approximately 50.78 percent, signaling stronger anticipated profitability.
- Future P/E: Cut from about 10.50x to roughly 7.45x, which implies a lower valuation multiple applied to higher expected earnings.
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