Orchid Island Capital (NYSE:ORC) Hits New 1-Year Low - Here's What Happened

Key Points

• Orchid Island Capital shares hit a new 52-week low of $5.96 and last traded near $6.06, below both their 50-day and 200-day moving averages.
• Analysts maintain a cautious outlook, with an average rating of “Reduce” and a $7.50 price target. The REIT also missed quarterly expectations, reporting $0.26 in EPS versus $0.28 expected and revenue of $59.97 million versus $74.26 million forecast.
• The company declared a monthly dividend of $0.10 per share, representing an annualized yield of approximately 19.8%, and authorized repurchases of up to 12.5% of its outstanding stock.

Orchid Island Capital, Inc. (NYSE:ORC - Get Free Report)'s share price reached a new 52-week low on Thursday . The company traded as low as $5.96 and last traded at $6.0550, with a volume of 6266902 shares trading hands. The stock had previously closed at $6.09.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on ORC shares. Weiss Ratings raised Orchid Island Capital from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday, July 15th. BTIG Research initiated coverage on Orchid Island Capital in a research report on Thursday, July 9th. They set a "neutral" rating on the stock. Two 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.com, Orchid Island Capital presently has an average rating of "Reduce" and an average target price of $7.50.

Orchid Island Capital Stock Down 0.6%

The firm has a 50 day simple moving average of $6.60 and a two-hundred day simple moving average of $6.83. The company has a market capitalization of $1.21 billion, a PE ratio of 4.09 and a beta of 1.55. The company has a current ratio of 509.34, a quick ratio of 509.34 and a debt-to-equity ratio of 0.34.

Orchid Island Capital (NYSE:ORC - Get Free Report) last released its quarterly 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 Dividend Announcement

The company also recently disclosed a monthly dividend, which will be paid on Thursday, October 29th. Shareholders of record on Wednesday, September 30th will be given a dividend of $0.10 per share. The ex-dividend date is Wednesday, September 30th. This represents a c) dividend on an annualized basis and a yield of 19.8%. Orchid Island Capital's dividend payout ratio is presently 81.08%.

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

Institutional Trading of Orchid Island Capital

Several hedge funds and other institutional investors have recently made changes to their positions in the company. GAMMA Investing LLC raised its holdings in Orchid Island Capital by 91.0% during the second quarter. GAMMA Investing LLC now owns 3,650 shares of the real estate investment trust's stock worth $25,000 after purchasing an additional 1,739 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its position in Orchid Island Capital by 32,505.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 6,521 shares of the real estate investment trust's stock valued at $47,000 after purchasing an additional 6,501 shares during the period. McIlrath & Eck LLC boosted its holdings 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 purchasing an additional 4,534 shares in the last quarter. State of Wyoming purchased a new stake in Orchid Island Capital in the 1st quarter valued at approximately $66,000. Finally, PNC Financial Services Group Inc. increased its position in Orchid Island Capital by 51.3% during the 1st quarter. PNC Financial Services Group Inc. now owns 9,704 shares of the real estate investment trust's stock worth $68,000 after purchasing an additional 3,291 shares during the period. Hedge funds and other institutional investors own 32.74% of the company's stock.

About Orchid Island Capital

Orchid Island Capital, Inc is a real estate investment trust (REIT) focused on investing in residential mortgage-backed securities (RMBS). Its portfolio primarily consists of agency RMBS, which are securities issued or guaranteed by U.S. government-sponsored entities such as Fannie Mae and Freddie Mac, or by government agencies such as Ginnie Mae.

The company seeks to generate income from its investments and finances portions of its portfolio through borrowings, including repurchase agreements.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.