Orchid Island Capital (NYSE:ORC) Reaches New 52-Week Low - What's Next?

Key Points

• ORC shares fell 3% to a new 52-week low of $5.96 during intraday trading, below its 50-day and 200-day moving averages.
• Analyst sentiment remains cautious, with an average rating of “Reduce” and a $7.50 consensus 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 estimated.
• Orchid Island Capital declared a monthly dividend of $0.10 per share, representing an indicated 20.2% yield; its board also authorized repurchases of up to 12.5% of outstanding shares.

Orchid Island Capital, Inc. (NYSE:ORC - Get Free Report) shares reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $5.96 and last traded at $5.9350, with a volume of 3941345 shares. The stock had previously closed at $6.12.

Analyst Ratings Changes

ORC has been the topic of a number of research reports. BTIG Research began coverage on shares of Orchid Island Capital in a report on Thursday, July 9th. They set a "neutral" rating on the stock. Weiss Ratings raised shares of Orchid Island Capital from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday, July 15th. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $7.50.

Orchid Island Capital Trading Down 3.0%

The stock has a 50-day moving average of $6.54 and a two-hundred day moving average of $6.80. The company has a market cap of $1.18 billion, a P/E ratio of 4.01 and a beta of 1.55. The company has a debt-to-equity ratio of 0.34, a quick ratio of 509.34 and a current ratio of 509.34.

Orchid Island Capital (NYSE:ORC - Get Free Report) last released 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 business 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 disclosed a monthly dividend, which will be paid on Thursday, October 29th. Shareholders of record on Wednesday, September 30th will be paid a dividend of $0.10 per share. This represents a c) dividend on an annualized basis and a yield of 20.2%. The ex-dividend date is Wednesday, September 30th. Orchid Island Capital's dividend payout ratio (DPR) is currently 81.08%.

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in ORC. Bank of New York Mellon Corp bought a new position in Orchid Island Capital in the second quarter worth approximately $3,899,000. Y Intercept Hong Kong Ltd boosted its stake in shares of Orchid Island Capital by 425.8% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 579,236 shares of the real estate investment trust's stock worth $4,072,000 after acquiring an additional 469,076 shares during the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in shares of Orchid Island Capital during the 1st quarter valued at $2,894,000. Independent Financial Group LLC bought a new stake in shares of Orchid Island Capital during the 1st quarter valued at $1,687,000. Finally, Jennison Associates LLC purchased a new stake in shares of Orchid Island Capital in the 1st quarter worth $1,187,000. Institutional investors own 32.74% of the company's stock.

Orchid Island Capital Company Profile

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.