Orchid Island Capital (NYSE:ORC) Hits New 12-Month Low - Here's Why

Key Points

• Orchid Island Capital shares hit a new 52-week low of $6.38, trading below both their 50-day average of $6.73 and 200-day average of $7.12.
• The REIT’s latest results fell short of expectations, with quarterly EPS of $0.26 versus a $0.28 consensus estimate and revenue of $59.97 million compared with projections of $74.26 million.
• Analyst sentiment is cautious: ORC has an average “Reduce” rating and a $7.50 price target, despite its recently declared monthly $0.10 dividend, which equates to an 18.6% annualized yield.

Orchid Island Capital, Inc. (NYSE:ORC - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $6.38 and last traded at $6.3750, with a volume of 788012 shares. The stock had previously closed at $6.47.

Analyst Upgrades and Downgrades

Several brokerages recently commented on ORC. Weiss Ratings raised Orchid Island Capital from a "sell (d)" rating to a "sell (d+)" rating in a report on Wednesday, July 15th. BTIG Research started coverage on Orchid Island Capital in a research note on Thursday, July 9th. They issued a "neutral" rating on the stock. Finally, Wall Street Zen cut Orchid Island Capital from a "hold" rating to a "sell" rating in a research note on Tuesday, May 5th. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Reduce" and an average price target of $7.50.

Orchid Island Capital Price Performance

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 has a market cap of $1.29 billion, a price-to-earnings ratio of 4.36 and a beta of 1.55. The business has a 50-day moving average price of $6.73 and a 200 day moving average price of $7.12.

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

Orchid Island Capital Announces Dividend

The company also recently declared a monthly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, July 31st will be issued a dividend of $0.10 per share. The ex-dividend date is Friday, July 31st. This represents a c) dividend on an annualized basis and a dividend yield of 18.6%. Orchid Island Capital's payout ratio is currently 81.08%.

Orchid Island Capital announced that its Board of Directors has approved a stock buyback plan on Monday, June 22nd that permits the company to repurchase 25,000,000,000,000 shares. This repurchase authorization permits the real estate investment trust to reacquire up to 12.5% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board believes its shares are undervalued.

Institutional Trading of Orchid Island Capital

Several large investors have recently added to or reduced their stakes in ORC. Vanguard Group Inc. grew its holdings in shares of Orchid Island Capital by 23.4% during the fourth quarter. Vanguard Group Inc. now owns 9,767,670 shares of the real estate investment trust's stock valued at $70,327,000 after buying an additional 1,850,221 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Orchid Island Capital by 3.9% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,953,916 shares of the real estate investment trust's stock worth $27,717,000 after acquiring an additional 149,251 shares during the period. Geode Capital Management LLC grew its stake in Orchid Island Capital by 25.6% during the 4th quarter. Geode Capital Management LLC now owns 3,903,240 shares of the real estate investment trust's stock valued at $28,109,000 after acquiring an additional 795,210 shares in the last quarter. Invesco Ltd. increased its holdings in shares of Orchid Island Capital by 10.3% in the 3rd quarter. Invesco Ltd. now owns 3,165,436 shares of the real estate investment trust's stock valued at $22,190,000 after purchasing an additional 294,547 shares during the period. Finally, State Street Corp lifted its position in shares of Orchid Island Capital by 18.8% in the fourth quarter. State Street Corp now owns 3,059,581 shares of the real estate investment trust's stock worth $22,394,000 after purchasing an additional 484,209 shares in the last quarter. 32.74% of the stock is owned by institutional investors and hedge funds.

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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