Cherry Hill Mortgage (NYSE:CHMI) Investment Corporation (NYSE:CHMI), a real estate investment trust, has expanded its at-the-market (ATM) offering program, increasing the total potential sales from $100 million to $150 million, according to a recent 8-K filing with the U.S. Securities and Exchange Commission (SEC). The Maryland-based company has entered into amendments with sales agents BTIG, LLC, Citizens JMP Securities, LLC, and B. Riley Securities, Inc. to facilitate the sale of additional shares.
As of today, Cherry Hill Mortgage has sold approximately $95.2 million under the ATM program, leaving room for an additional $54.8 million in potential equity sales. The ATM program allows the company to sell its common stock through the sales agents directly on the New York Stock Exchange or through other permissible methods, including privately negotiated transactions.
The expansion of the ATM program is being offered pursuant to a prospectus dated August 6, 2021, and supplemented on various dates, with the latest supplement dated today. These documents are part of the company's existing registration statement.
Venable LLP, serving as Maryland counsel for Cherry Hill Mortgage, provided a legal opinion regarding the legality of the shares to be sold under the new terms of the ATM program.
InvestingPro Insights
Cherry Hill Mortgage Investment Corporation's (NYSE:CHMI) recent expansion of its ATM offering program aligns with some positive forecasts and challenging financial metrics. According to InvestingPro Tips, analysts are expecting an uptick in net income and sales growth for the current year. This could indicate a potential strengthening of the company's financial position, which may reassure investors considering the additional shares being offered.
However, it's important to note that the company has experienced significant volatility in its stock price, and short-term obligations currently exceed its liquid assets. Investors may want to consider these factors when evaluating the company's expanded ATM offering program. In addition, Cherry Hill Mortgage has maintained dividend payments for 12 consecutive years, which could be a point of interest for income-focused investors, especially considering the company's substantial dividend yield of 16.48% as of the last reported period.
On the data front, Cherry Hill Mortgage boasts a remarkable revenue growth rate of 1901.17% over the last twelve months as of Q1 2024, which could be a signal of robust business expansion. The company's price to book ratio stands at a modest 0.78, potentially suggesting an undervaluation relative to its assets. Investors should also be aware that the company's P/E ratio is negative at -7.17, reflecting its unprofitability over the last twelve months, although analysts predict a return to profitability this year.
For those seeking a deeper dive into Cherry Hill Mortgage's financial health and prospects, InvestingPro offers additional tips and a fair value estimate, which can provide further guidance on the company's valuation. There are currently more tips available on InvestingPro for those interested in a more comprehensive analysis.
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