Arrowstreet Capital Limited Partnership Buys Shares of 411,675 Orchid Island Capital, Inc. $ORC

Key Points

• Arrowstreet Capital acquired 411,675 shares of Orchid Island Capital in the first quarter, valued at approximately $2.9 million and representing a 0.21% stake. Other institutional investors also increased or initiated positions, with institutions collectively owning 32.74% of ORC.
• Orchid Island Capital reported quarterly EPS of $0.26, below the $0.28 consensus estimate, while revenue of $59.97 million fell short of analysts’ $74.26 million forecast. Shares opened at $6.40, near the company’s 52-week low of $6.35.
• The company declared a monthly dividend of $0.10 per share, implying an annualized yield of 18.8%, and authorized repurchases of up to 12.5% of its outstanding shares. Analysts maintain a consensus “Reduce” rating with a $7.50 target price.

Arrowstreet Capital Limited Partnership bought a new stake in shares of Orchid Island Capital, Inc. (NYSE:ORC - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 411,675 shares of the real estate investment trust's stock, valued at approximately $2,894,000. Arrowstreet Capital Limited Partnership owned 0.21% of Orchid Island Capital as of its most recent SEC filing.

Several other large investors also recently modified their holdings of ORC. Wolverine Asset Management LLC grew its stake in shares of Orchid Island Capital by 298.9% during the 4th quarter. Wolverine Asset Management LLC now owns 1,011,903 shares of the real estate investment trust's stock worth $7,286,000 after acquiring an additional 758,217 shares during the period. JPMorgan Chase & Co. raised its stake in Orchid Island Capital by 295.1% in the 3rd quarter. JPMorgan Chase & Co. now owns 234,720 shares of the real estate investment trust's stock valued at $1,645,000 after acquiring an additional 175,311 shares during the period. Independent Financial Group LLC purchased a new stake in Orchid Island Capital during the first quarter valued at about $1,687,000. GraniteShares Advisors LLC purchased a new stake in Orchid Island Capital during the fourth quarter valued at about $2,673,000. Finally, Jennison Associates LLC bought a new position in Orchid Island Capital during the first quarter worth about $1,187,000. Hedge funds and other institutional investors own 32.74% of the company's stock.

Orchid Island Capital Stock Performance

Shares of ORC opened at $6.40 on Wednesday. The stock's 50-day simple moving average is $6.72 and its 200 day simple moving average is $7.11. The stock has a market capitalization of $1.28 billion, a price-to-earnings ratio of 4.32 and a beta of 1.55. The company has a debt-to-equity ratio of 0.34, a quick ratio of 509.34 and a current ratio of 509.34. Orchid Island Capital, Inc. has a 52-week low of $6.35 and a 52-week high of $8.40.

Orchid Island Capital (NYSE:ORC - Get Free Report) last issued its earnings results on Thursday, July 23rd. The real estate investment trust reported $0.26 EPS for the quarter, missing the consensus estimate of $0.28 by ($0.02). The business had revenue of $59.97 million during the quarter, compared to analyst estimates of $74.26 million.

Orchid Island Capital Announces Dividend

The company also recently disclosed a monthly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, July 31st will be paid a dividend of $0.10 per share. The ex-dividend date of this dividend is Friday, July 31st. This represents a c) annualized dividend and a yield of 18.8%. Orchid Island Capital's payout ratio is currently 81.08%.

Orchid Island Capital declared that its Board of Directors has approved a stock repurchase plan on Monday, June 22nd that permits the company to buyback 25,000,000,000,000 shares. This buyback authorization permits the real estate investment trust to purchase up to 12.5% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on ORC. Wall Street Zen downgraded shares of Orchid Island Capital from a "hold" rating to a "sell" rating in a research note on Tuesday, May 5th. BTIG Research initiated coverage on shares of Orchid Island Capital in a research note on Thursday, July 9th. They set a "neutral" rating on the stock. Finally, Weiss Ratings raised shares of Orchid Island Capital from a "sell (d)" rating to a "sell (d+)" rating in a report on Wednesday, July 15th. Two equities 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 company presently has a consensus rating of "Reduce" and a consensus target price of $7.50.

About Orchid Island Capital

Orchid Island Capital is a real estate investment trust that specializes in investing in residential mortgage‐backed securities (RMBS), with a primary focus on mortgage pass‐through securities guaranteed by the Government National Mortgage Association (Ginnie Mae). Structured to elect and maintain status as a REIT under the U.S. Internal Revenue Code, the company's principal business strategy involves acquiring pools of U.S. residential mortgages in the secondary market and holding them to generate interest income.

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