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

Key Points

• Orchid Island Capital shares hit a new 52-week low, trading as low as $4.85 and down 2.7%, well below their 50-day and 200-day moving averages.
• Analysts maintain a cautious outlook, with a consensus “Reduce” rating and a $7.50 price target. The company’s latest quarterly results missed estimates, reporting $0.26 in EPS versus $0.28 expected and revenue of $59.97 million versus $74.26 million forecast.
• Despite the stock’s decline, Orchid Island Capital announced a monthly dividend of $0.10 per share, implying a 24.8% annualized yield, and authorized a buyback of up to 12.5% of its outstanding shares.

Orchid Island Capital, Inc. (NYSE:ORC - Get Free Report)'s stock price hit a new 52-week low during trading on Monday. The company traded as low as $4.85 and last traded at $4.8040, with a volume of 629,812 shares trading hands. The stock had previously closed at $4.97.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on ORC shares. BTIG Research started coverage on shares of Orchid Island Capital in a report on Thursday, July 9th. They set a "neutral" rating for the company. Weiss Ratings downgraded shares of Orchid Island Capital from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday, October 8th. 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, Orchid Island Capital has a consensus rating of "Reduce" and a consensus target price of $7.50.

Orchid Island Capital Trading Down 2.7%

The stock has a market cap of $965.07 million, a PE ratio of 3.27 and a beta of 1.60. The company's 50 day moving average is $6.06 and its 200-day moving average is $6.56.

Orchid Island Capital (NYSE:ORC - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The real estate investment trust reported $0.26 EPS for the quarter, missing analysts' consensus estimates of $0.28 by ($0.02). The company 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 Friday, November 27th. Investors of record on Friday, October 30th will be issued a $0.10 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 24.8%. The ex-dividend date of this dividend is Friday, October 30th. Orchid Island Capital's dividend payout ratio (DPR) is 81.08%.

Orchid Island Capital announced that its board has authorized a share buyback plan on Monday, June 22nd that allows the company to buy back 25,000,000,000,000 outstanding shares. This buyback authorization allows the real estate investment trust to reacquire up to 12.5% of its shares through open market purchases. Share buyback plans are often an indication that the company's board believes its stock is undervalued.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Arizona State Retirement System increased its holdings in shares of Orchid Island Capital by 10.0% in the 2nd quarter. Arizona State Retirement System now owns 55,379 shares of the real estate investment trust's stock valued at $386,000 after purchasing an additional 5,018 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Orchid Island Capital during the 2nd quarter worth $690,000. Ameritas Advisory Services LLC acquired a new stake in shares of Orchid Island Capital in the second quarter valued at about $78,000. Bank of New York Mellon Corp acquired a new stake in Orchid Island Capital in the 2nd quarter valued at approximately $3,899,000. Finally, GAMMA Investing LLC boosted its position in shares of 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 during the period. Institutional investors own 32.74% of the company's stock.

About Orchid Island Capital

Orchid Island Capital, Inc is a real estate investment trust that invests primarily in residential mortgage-backed securities (RMBS) issued or guaranteed by U.S. government-sponsored entities. Its portfolio generally consists of agency securities backed by mortgages insured or guaranteed by the Government National Mortgage Association (Ginnie Mae), Federal National Mortgage Association (Fannie Mae), and Federal Home Loan Mortgage Corporation (Freddie Mac).

The company seeks to generate income from its investments and manage interest-rate and prepayment risks through portfolio construction, financing arrangements, and hedging strategies.

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.