Engineers Gate Manager LP Cuts Stock Holdings in Orchid Island Capital, Inc. $ORC

Key Points

• Engineers Gate Manager LP cut its Orchid Island Capital stake by 88.3% in the second quarter, selling 545,977 shares and retaining 72,228 shares worth approximately $503,000.
• Orchid Island Capital shares fell 3.0% to $5.93, near their 12-month low. The REIT’s latest quarterly results missed expectations, with EPS of $0.26 versus the $0.28 consensus and revenue of $59.97 million versus $74.26 million expected.
• The company authorized a repurchase of up to 12.5% of its outstanding shares and declared a monthly $0.10 dividend, representing an annualized yield of about 20.2%. Analysts maintain a “Reduce” consensus rating with a $7.50 target price.

Engineers Gate Manager LP lowered its stake in Orchid Island Capital, Inc. (NYSE:ORC - Free Report) by 88.3% during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 72,228 shares of the real estate investment trust's stock after selling 545,977 shares during the quarter. Engineers Gate Manager LP's holdings in Orchid Island Capital were worth $503,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Arizona State Retirement System grew its position in shares of Orchid Island Capital by 10.0% during the second quarter. Arizona State Retirement System now owns 55,379 shares of the real estate investment trust's stock valued at $386,000 after purchasing an additional 5,018 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Orchid Island Capital in the second quarter worth about $690,000. Ameritas Advisory Services LLC bought a new position in Orchid Island Capital during the second quarter valued at approximately $78,000. Bank of New York Mellon Corp purchased a new position in Orchid Island Capital during the 2nd quarter valued at approximately $3,899,000. Finally, GAMMA Investing LLC increased its stake in Orchid Island Capital by 91.0% in the 2nd 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 during the last quarter. Institutional investors own 32.74% of the company's stock.

Orchid Island Capital Trading Down 3.0%

Shares of ORC opened at $5.93 on Thursday. Orchid Island Capital, Inc. has a twelve month low of $5.93 and a twelve month high of $8.40. The company has a market cap of $1.18 billion, a P/E ratio of 4.01 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 company's fifty day simple moving average is $6.52 and its 200-day simple moving average is $6.79.

Orchid Island Capital (NYSE:ORC - Get Free Report) last released its quarterly 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 company had revenue of $59.97 million for the quarter, compared to analysts' expectations of $74.26 million.

Orchid Island Capital declared that its Board of Directors has approved 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 buy up to 12.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

Orchid Island Capital Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Thursday, October 29th. Investors of record on Wednesday, September 30th will be paid a dividend of $0.10 per share. This represents a c) dividend on an annualized basis and a dividend yield of 20.2%. The ex-dividend date of this dividend is Wednesday, September 30th. Orchid Island Capital's dividend payout ratio (DPR) is currently 81.08%.

Wall Street Analyst Weigh In

ORC has been the subject of a number of research reports. Weiss Ratings upgraded Orchid Island Capital from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday, July 15th. BTIG Research assumed coverage on shares of Orchid Island Capital in a research note on Thursday, July 9th. They set a "neutral" rating on the stock. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Reduce" and a consensus target price of $7.50.

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.

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