Bank of New York Mellon Corp Makes New $3.90 Million Investment in Orchid Island Capital, Inc. $ORC

Key Points

• Bank of New York Mellon acquired 559,452 shares of Orchid Island Capital worth approximately $3.9 million, giving it a 0.28% stake. Institutional investors collectively own 32.74% of ORC.
• Analysts maintain a cautious outlook: two rate the stock Hold and one Sell, resulting in an average “Reduce” rating and a $7.50 price target. ORC recently traded at $6.57.
• Orchid Island Capital reported quarterly EPS of $0.26, below the $0.28 consensus, while revenue of $59.97 million also missed expectations. The company declared a monthly $0.10 dividend, representing an indicated yield of 18.3%, and authorized repurchases of up to 12.5% of outstanding shares.

Bank of New York Mellon Corp purchased a new position in shares of Orchid Island Capital, Inc. (NYSE:ORC - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 559,452 shares of the real estate investment trust's stock, valued at approximately $3,899,000. Bank of New York Mellon Corp owned about 0.28% of Orchid Island Capital as of its most recent SEC filing.

Other hedge funds and other institutional investors have also modified their holdings of the company. GAMMA Investing LLC lifted its position in shares of Orchid Island Capital by 91.0% in the second 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 last quarter. Prudential Financial Inc. boosted its stake in shares of Orchid Island Capital by 17.8% during the 2nd quarter. Prudential Financial Inc. now owns 13,189 shares of the real estate investment trust's stock worth $92,000 after acquiring an additional 1,995 shares in the last quarter. Barclays PLC increased its holdings in shares of Orchid Island Capital by 1.0% during the 3rd quarter. Barclays PLC now owns 203,626 shares of the real estate investment trust's stock valued at $1,427,000 after acquiring an additional 2,016 shares during the last quarter. CreativeOne Wealth LLC increased its holdings in shares of Orchid Island Capital by 11.8% during the 4th quarter. CreativeOne Wealth LLC now owns 19,248 shares of the real estate investment trust's stock valued at $139,000 after acquiring an additional 2,025 shares during the last quarter. Finally, PNC Financial Services Group Inc. raised its stake in shares of Orchid Island Capital by 64.0% in the 4th quarter. PNC Financial Services Group Inc. now owns 6,413 shares of the real estate investment trust's stock valued at $46,000 after acquiring an additional 2,502 shares in the last quarter. Institutional investors own 32.74% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. BTIG Research assumed coverage on Orchid Island Capital in a report on Thursday, July 9th. They issued a "neutral" rating for the company. Weiss Ratings raised shares of Orchid Island Capital from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday, July 15th. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Orchid Island Capital presently has an average rating of "Reduce" and an average price target of $7.50.

Orchid Island Capital Price Performance

NYSE:ORC opened at $6.57 on Friday. The company has a debt-to-equity ratio of 0.34, a current ratio of 509.34 and a quick ratio of 509.34. Orchid Island Capital, Inc. has a one year low of $6.31 and a one year high of $8.40. The company has a fifty day moving average price of $6.68 and a 200 day moving average price of $6.91. The stock has a market cap of $1.31 billion, a P/E ratio of 4.44 and a beta of 1.55.

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

Orchid Island Capital Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Tuesday, September 29th. Investors of record on Monday, August 31st will be given a $0.10 dividend. This represents a c) annualized dividend and a yield of 18.3%. The ex-dividend date of this dividend is Monday, August 31st. Orchid Island Capital's dividend payout ratio (DPR) is 81.08%.

Orchid Island Capital announced that its Board of Directors has initiated a stock buyback 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 reacquire up to 12.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its stock is undervalued.

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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