Orchid Island Capital (NYSE:ORC) Announces Quarterly Earnings Results

Key Points

• Orchid Island Capital reported quarterly EPS of $0.26, missing analysts’ estimate of $0.28 by $0.02.
• The stock fell to $6.62 in trading and has been hovering below its 50-day and 200-day moving averages, with a current market cap of about $1.32 billion.
• The company declared a monthly dividend of $0.10 per share, implying an annualized yield of 18.1%, and also launched a large stock repurchase program.

Orchid Island Capital (NYSE:ORC - Get Free Report) announced its earnings results on Thursday. The real estate investment trust reported $0.26 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.28 by ($0.02), Zacks reports.

Orchid Island Capital Price Performance

Orchid Island Capital stock traded down $0.07 during mid-day trading on Thursday, hitting $6.62. 6,158,030 shares of the company were exchanged, compared to its average volume of 6,109,395. The company has a market capitalization of $1.32 billion, a PE ratio of 8.82 and a beta of 1.54. The business has a fifty day moving average of $6.77 and a 200 day moving average of $7.18. Orchid Island Capital has a 1-year low of $6.41 and a 1-year high of $8.40. The company has a quick ratio of 509.34, a current ratio of 509.34 and a debt-to-equity ratio of 0.26.

Orchid Island Capital Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, July 31st will be given a $0.10 dividend. This represents a c) dividend on an annualized basis and a yield of 18.1%. The ex-dividend date is Friday, July 31st. Orchid Island Capital's dividend payout ratio is 160.00%.

Orchid Island Capital declared that its board has initiated a stock repurchase program on Monday, June 22nd that authorizes the company to buyback 25,000,000,000,000 shares. This buyback authorization authorizes the real estate investment trust to repurchase up to 12.5% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on ORC shares. Wall Street Zen lowered Orchid Island Capital from a "hold" rating to a "sell" rating in a research note on Tuesday, May 5th. Weiss Ratings upgraded Orchid Island Capital from a "sell (d)" rating to a "sell (d+)" rating in a research note on Wednesday, July 15th. Finally, BTIG Research began coverage on Orchid Island Capital in a research report on Thursday, July 9th. They issued a "neutral" rating for the company. Two 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 a consensus rating of "Reduce" and a consensus target price of $7.50.

Institutional Investors Weigh In On Orchid Island Capital

A number of hedge funds have recently made changes to their positions in the company. Corient Private Wealth LLC bought a new position in Orchid Island Capital during the 4th quarter valued at about $115,000. Compound Planning Inc. acquired a new stake in shares of Orchid Island Capital during the fourth quarter worth approximately $103,000. Mercer Global Advisors Inc. ADV acquired a new stake in shares of Orchid Island Capital during the fourth quarter worth approximately $102,000. Vident Advisory LLC bought a new position in shares of Orchid Island Capital in the fourth quarter valued at approximately $231,000. Finally, XTX Topco Ltd bought a new position in shares of Orchid Island Capital in the fourth quarter valued at approximately $181,000. Institutional investors and hedge funds own 32.74% of the company's stock.

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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