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bullish; CHMI likely trades toward $3.10 per share on merger certainty within 1–2 quarters, barring deal delays or regulatory hurdles.
What happened and why it matters
Cherry Hill posted Q2 2026 GAAP net income of $1.3M ($0.04/sh) and EAD of $5.5M ($0.15/sh). The company also disclosed a definitive merger with MITT valued at $117.5M, implying $3.10 per CHMI share, likely to reprice the stock near completion. Closing is anticipated in Q4 2026, subject to approvals.
The deal creates a clear, premium-based exit value for CHMI shareholders, reducing downside risk and providing near-term upside toward the $3.10 implied price. However, closing remains contingent on regulatory and stockholder approvals, so upside is conditioned on transaction progress and timing.
Q2 2026 GAAP net income: $1.3M, $0.04/sh; EAD: $5.5M, $0.15/sh.
Common BVPS: $3.16; regular dividend $0.10; yield 16.6%.
Leverage 5.02x; unrestricted cash $52.1M as of 6/30/2026.
On Aug 10, 2026 CHMI-MITT merger; implied value $117.5M; 29% premium to close.
Webcast canceled; closing expected Q4 2026; merger unanimously approved.
Category: M&A. The core driver is a definitive merger agreement with MITT, a major corporate development that is likely to reprice CHMI's equity and shift ownership to a larger mortgage REIT, with collateral implications for CHMI’s dividend policy and asset mix.
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