Orchid Island Capital (NYSE:ORC) Hits New 1-Year Low – Here’s Why

Orchid Island Capital, Inc. (NYSE:ORC)’s share price hit a new 52-week low on Monday. The company traded as low as $4.85 and last traded at $4.8040, with a volume of 629,812 shares changing hands. The stock had previously closed at $4.97.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. BTIG Research started coverage on Orchid Island Capital in a research report on Thursday, July 9th. They set a “neutral” rating on the stock. Weiss Ratings cut Orchid Island Capital from a “sell (d+)” rating to a “sell (d)” rating in a report on Thursday, October 8th. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Reduce” and an average price target of $7.50.

Orchid Island Capital Trading Down 2.7%

The stock has a market cap of $965.07 million, a price-to-earnings ratio of 3.27 and a beta of 1.60. The firm has a fifty day simple moving average of $6.06 and a 200-day simple moving average of $6.56.

Orchid Island Capital (NYSE:ORC) last released its earnings results on Thursday, July 23rd. The real estate investment trust reported $0.26 EPS for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.02). The business had revenue of $59.97 million for the quarter, compared to analysts’ expectations of $74.26 million.

Orchid Island Capital Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Friday, November 27th. Investors of record on Friday, October 30th will be paid a dividend of $0.10 per share. This represents a $1.20 dividend on an annualized basis and a yield of 24.8%. The ex-dividend date of this dividend is Friday, October 30th. Orchid Island Capital’s dividend payout ratio is presently 81.08%.

Orchid Island Capital announced that its board has initiated a share repurchase program on Monday, June 22nd that allows the company to repurchase 25,000,000,000,000 shares. This buyback authorization allows the real estate investment trust to buy up to 12.5% of its stock through open market purchases. Share buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Hedge Funds Weigh In On Orchid Island Capital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ORC. GAMMA Investing LLC raised its holdings in Orchid Island Capital by 91.0% during the second quarter. GAMMA Investing LLC now owns 3,650 shares of the real estate investment trust’s stock worth $25,000 after acquiring an additional 1,739 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its position in shares of Orchid Island Capital by 32,505.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 6,521 shares of the real estate investment trust’s stock worth $47,000 after purchasing an additional 6,501 shares during the last quarter. McIlrath & Eck LLC increased its position in shares of Orchid Island Capital by 157.2% during the 1st quarter. McIlrath & Eck LLC now owns 7,418 shares of the real estate investment trust’s stock worth $52,000 after purchasing an additional 4,534 shares during the last quarter. State of Wyoming bought a new stake in shares of Orchid Island Capital during the 1st quarter worth approximately $66,000. Finally, PNC Financial Services Group Inc. raised its stake in shares of Orchid Island Capital by 51.3% during the 1st quarter. PNC Financial Services Group Inc. now owns 9,704 shares of the real estate investment trust’s stock worth $68,000 after purchasing an additional 3,291 shares in the last quarter. 32.74% of the stock is owned by institutional investors and hedge funds.

Orchid Island Capital Company Profile

Orchid Island Capital, Inc is a real estate investment trust that invests primarily in residential mortgage-backed securities (RMBS) issued or guaranteed by U.S. government-sponsored entities. Its portfolio generally consists of agency securities backed by mortgages insured or guaranteed by the Government National Mortgage Association (Ginnie Mae), Federal National Mortgage Association (Fannie Mae), and Federal Home Loan Mortgage Corporation (Freddie Mac).

The company seeks to generate income from its investments and manage interest-rate and prepayment risks through portfolio construction, financing arrangements, and hedging strategies.