Orchid Island Capital (NYSE:ORC) Shares Pass Below Two Hundred Day Moving Average - Here's Why

Key Points

• Orchid Island Capital shares fell below their 200-day moving average, trading as low as $6.59 versus the $7.04 average, while analysts’ consensus rating stood at “Reduce” with a $7.50 price target.
• The REIT’s latest quarterly results missed expectations, reporting $0.26 EPS versus $0.28 expected and revenue of $59.97 million versus the $74.26 million consensus.
• Orchid Island declared a monthly $0.10 dividend, representing an annualized yield of about 18.1%, and authorized a buyback allowing repurchases of up to 12.5% of its outstanding shares.

Shares of Orchid Island Capital, Inc. (NYSE:ORC - Get Free Report) crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $7.04 and traded as low as $6.59. Orchid Island Capital shares last traded at $6.63, with a volume of 3,841,995 shares changing hands.

Wall Street Analysts Forecast Growth

ORC has been the subject of several research reports. Wall Street Zen downgraded shares of 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 started coverage on Orchid Island Capital in a report on Thursday, July 9th. They issued a "neutral" rating for the company. Two equities research 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 stock currently has an average rating of "Reduce" and an average target price of $7.50.

Orchid Island Capital Price Performance

The stock's 50 day moving average is $6.69 and its two-hundred day moving average is $7.04. The stock has a market capitalization of $1.32 billion, a PE ratio of 4.48 and a beta of 1.55. The company has a debt-to-equity ratio of 0.34, a current ratio of 509.34 and a quick ratio of 509.34.

Orchid Island Capital (NYSE:ORC - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. 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). The company had revenue of $59.97 million for the quarter, compared to the consensus estimate of $74.26 million.

Orchid Island Capital Announces Dividend

The firm also recently declared a monthly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Monday, August 31st will be paid a $0.10 dividend. The ex-dividend date is Monday, August 31st. This represents a c) dividend on an annualized basis and a yield of 18.1%. Orchid Island Capital's dividend payout ratio (DPR) is currently 81.08%.

Orchid Island Capital announced that its board has authorized a share 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 purchase up to 12.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of ORC. GAMMA Investing LLC boosted its stake in Orchid Island Capital by 91.0% in the second quarter. GAMMA Investing LLC now owns 3,650 shares of the real estate investment trust's stock valued at $25,000 after acquiring an additional 1,739 shares in the last quarter. PNC Financial Services Group Inc. grew its holdings in shares of Orchid Island Capital by 64.0% during the fourth quarter. PNC Financial Services Group Inc. now owns 6,413 shares of the real estate investment trust's stock worth $46,000 after buying an additional 2,502 shares during the last quarter. Caitong International Asset Management Co. Ltd grew its holdings in shares of Orchid Island Capital by 32,505.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 6,521 shares of the real estate investment trust's stock worth $47,000 after buying an additional 6,501 shares during the last quarter. McIlrath & Eck LLC increased its position in Orchid Island Capital by 157.2% in the 1st quarter. McIlrath & Eck LLC now owns 7,418 shares of the real estate investment trust's stock valued at $52,000 after acquiring an additional 4,534 shares during the period. Finally, Raymond James Financial Inc. acquired a new position in Orchid Island Capital in the 2nd quarter valued at about $55,000. 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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