Orchid Island Capital, Inc. (NYSE:ORC) Short Interest Update

Key Points

• Short interest surged 59.7% in March to 18,841,769 shares, representing 9.7% of the float and a days-to-cover of 2.5, indicating increased bearish positioning.
• Orchid Island declared a monthly dividend of $0.12 (annualized yield 20.0%) but the payout ratio is 138.46%, which raises questions about dividend sustainability.
• Analysts are mixed: the average rating is Reduce with a consensus target of $7.50, including a recent downgrade to sell from Weiss and neutral coverage from Compass Point.

Orchid Island Capital, Inc. (NYSE:ORC - Get Free Report) saw a large increase in short interest in the month of March. As of March 31st, there was short interest totaling 18,841,769 shares, an increase of 59.7% from the March 15th total of 11,798,603 shares. Based on an average daily volume of 7,635,505 shares, the days-to-cover ratio is presently 2.5 days. Currently, 9.7% of the company's shares are sold short.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. Weiss Ratings lowered Orchid Island Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, April 6th. Wall Street Zen raised Orchid Island Capital from a "sell" rating to a "hold" rating in a research note on Saturday. Finally, Compass Point assumed coverage on Orchid Island Capital in a research note on Monday, December 15th. They set a "neutral" rating and a $7.50 price target on the stock. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Orchid Island Capital has an average rating of "Reduce" and a consensus target price of $7.50.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Nisa Investment Advisors LLC increased its holdings in Orchid Island Capital by 313.0% in the 3rd quarter. Nisa Investment Advisors LLC now owns 207,548 shares of the real estate investment trust's stock valued at $1,480,000 after purchasing an additional 157,300 shares in the last quarter. Advisors Asset Management Inc. acquired a new stake in Orchid Island Capital in the 3rd quarter valued at $972,000. JPMorgan Chase & Co. increased its holdings 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 purchasing an additional 175,311 shares in the last quarter. Segall Bryant & Hamill LLC acquired a new stake in Orchid Island Capital in the 3rd quarter valued at $1,412,000. Finally, SG Americas Securities LLC acquired a new stake in Orchid Island Capital in the 4th quarter valued at $552,000. 32.74% of the stock is owned by hedge funds and other institutional investors.

Orchid Island Capital Trading Down 0.2%

Shares of ORC opened at $7.19 on Tuesday. The company has a current ratio of 509.34, a quick ratio of 509.34 and a debt-to-equity ratio of 0.09. The firm has a market capitalization of $1.40 billion, a P/E ratio of 6.91 and a beta of 1.63. The stock's fifty day simple moving average is $7.32 and its 200 day simple moving average is $7.39. Orchid Island Capital has a twelve month low of $6.19 and a twelve month high of $8.40.

Orchid Island Capital (NYSE:ORC - Get Free Report) last issued its earnings results on Thursday, January 29th. The real estate investment trust reported $0.19 earnings per share for the quarter, topping the consensus estimate of $0.18 by $0.01. The firm had revenue of $124.78 million during the quarter, compared to analysts' expectations of $35.74 million. On average, equities research analysts forecast that Orchid Island Capital will post 0.37 earnings per share for the current year.

Orchid Island Capital Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Wednesday, April 29th. Investors of record on Tuesday, March 31st will be given a $0.12 dividend. This represents a c) annualized dividend and a dividend yield of 20.0%. The ex-dividend date of this dividend is Tuesday, March 31st. Orchid Island Capital's dividend payout ratio (DPR) is 138.46%.

Orchid Island Capital Company Profile

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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