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

Orchid Island Capital, Inc. (NYSE:ORC)’s share price reached a new 52-week low during mid-day trading on Tuesday. The stock traded as low as $5.59 and last traded at $5.6810, with a volume of 5343362 shares changing hands. The stock had previously closed at $5.71.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the stock. Weiss Ratings upgraded shares of Orchid Island Capital from a “sell (d)” rating to a “sell (d+)” rating in a report on Wednesday, July 15th. BTIG Research began coverage on shares of Orchid Island Capital in a research report on Thursday, July 9th. They issued a “neutral” rating for the company. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Reduce” and a consensus price target of $7.50.

Orchid Island Capital Stock Down 5.8%

The stock has a market cap of $1.08 billion, a price-to-earnings ratio of 3.67 and a beta of 1.55. The company has a current ratio of 509.34, a quick ratio of 509.34 and a debt-to-equity ratio of 0.34. The stock’s 50-day moving average price is $6.41 and its 200-day moving average price is $6.73.

Orchid Island Capital (NYSE:ORC) last posted its quarterly earnings data on Thursday, July 23rd. The real estate investment trust reported $0.26 earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.02). The firm had revenue of $59.97 million for the quarter, compared to the consensus estimate of $74.26 million.

Orchid Island Capital Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Thursday, October 29th. Stockholders of record on Wednesday, September 30th will be given a $0.10 dividend. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $1.20 annualized dividend and a dividend yield of 22.1%. Orchid Island Capital’s dividend payout ratio (DPR) is 81.08%.

Orchid Island Capital declared that its Board of Directors has initiated a share repurchase plan on Monday, June 22nd that allows the company to repurchase 25,000,000,000,000 outstanding shares. This repurchase authorization allows the real estate investment trust to purchase up to 12.5% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Orchid Island Capital

Several large investors have recently added to or reduced their stakes in ORC. Arizona State Retirement System increased its holdings in Orchid Island Capital by 10.0% in the second quarter. Arizona State Retirement System now owns 55,379 shares of the real estate investment trust’s stock worth $386,000 after purchasing an additional 5,018 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Orchid Island Capital during the 2nd quarter worth approximately $690,000. Ameritas Advisory Services LLC bought a new position in shares of Orchid Island Capital during the 2nd quarter worth approximately $78,000. Bank of New York Mellon Corp acquired a new stake in shares of Orchid Island Capital during the 2nd quarter worth approximately $3,899,000. Finally, GAMMA Investing LLC grew its position in shares of Orchid Island Capital by 91.0% during the 2nd quarter. GAMMA Investing LLC now owns 3,650 shares of the real estate investment trust’s stock worth $25,000 after buying an additional 1,739 shares during the period. Institutional investors and hedge funds own 32.74% of the company’s stock.

Orchid Island Capital Company Profile

Orchid Island Capital, Inc is a real estate investment trust (REIT) focused on investing in residential mortgage-backed securities (RMBS). Its portfolio primarily consists of agency RMBS, which are securities issued or guaranteed by U.S. government-sponsored entities such as Fannie Mae and Freddie Mac, or by government agencies such as Ginnie Mae.

The company seeks to generate income from its investments and finances portions of its portfolio through borrowings, including repurchase agreements.