Orchid Island Capital (NYSE:ORC) Announces Earnings Results

Key Points

• Earnings miss: Orchid Island reported EPS of ($0.11) versus $0.26 expected and revenue of ($12.56)M versus $33.03M consensus, a significant shortfall.
• Dividend declared but potentially unsustainable: The company set a monthly dividend of $0.10 (ex-dividend April 30), implying a 17.6% yield while showing a payout ratio of 115.38%.
• Market and analyst pressure: Shares slipped to $6.84 near their 12‑month low, and analysts have downgraded ORC toward "Reduce"/Sell with an average price target of $7.50.

Orchid Island Capital (NYSE:ORC - Get Free Report) released its quarterly earnings results on Thursday. The real estate investment trust reported ($0.11) EPS for the quarter, missing analysts' consensus estimates of $0.26 by ($0.37), FiscalAI reports. The business had revenue of ($12.56) million for the quarter, compared to the consensus estimate of $33.03 million.

Orchid Island Capital Price Performance

Shares of ORC stock traded down $0.12 during midday trading on Thursday, reaching $6.84. 6,381,850 shares of the company were exchanged, compared to its average volume of 7,059,957. Orchid Island Capital has a 12 month low of $6.62 and a 12 month high of $8.40. The company has a market cap of $1.37 billion, a P/E ratio of 6.57 and a beta of 1.63. The company's 50 day moving average price is $7.24 and its two-hundred day moving average price is $7.39. The company has a debt-to-equity ratio of 0.09, a quick ratio of 509.34 and a current ratio of 509.34.

Orchid Island Capital Cuts Dividend

The business also recently declared a monthly dividend, which will be paid on Thursday, May 28th. Shareholders of record on Thursday, April 30th will be given a dividend of $0.10 per share. This represents a c) dividend on an annualized basis and a dividend yield of 17.6%. The ex-dividend date is Thursday, April 30th. Orchid Island Capital's payout ratio is 115.38%.

Institutional Trading of Orchid Island Capital

Hedge funds and other institutional investors have recently made changes to their positions in the business. Corient Private Wealth LLC bought a new stake in shares of Orchid Island Capital in the 4th quarter worth approximately $115,000. Strs Ohio bought a new stake in shares of Orchid Island Capital in the 1st quarter worth approximately $111,000. Compound Planning Inc. bought a new stake in shares of Orchid Island Capital in the 4th quarter worth approximately $103,000. Mercer Global Advisors Inc. ADV bought a new stake in shares of Orchid Island Capital in the 4th quarter worth approximately $102,000. Finally, CIBC Bancorp USA Inc. bought a new stake in shares of Orchid Island Capital in the 3rd quarter worth approximately $96,000. 32.74% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

ORC has been the topic of a number of recent analyst reports. Weiss Ratings downgraded shares of Orchid Island Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, April 6th. Wall Street Zen downgraded shares of Orchid Island Capital from a "hold" rating to a "sell" rating in a research report on Sunday. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $7.50.

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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