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

Key Points

• Orchid Island Capital shares hit a new 52-week low at $5.59 and last traded around $5.68, below both the 50-day and 200-day moving averages.
• Analysts maintain a cautious outlook: two rate the stock Hold and one Sell, resulting in an average “Reduce” rating and a $7.50 price target.
• The REIT reported quarterly EPS of $0.26, below the $0.28 consensus estimate, while maintaining a monthly dividend of $0.10 per share, equivalent to a 21.1% annualized yield.

Orchid Island Capital, Inc. (NYSE:ORC - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Tuesday. The company traded as low as $5.59 and last traded at $5.6810, with a volume of 5343362 shares. The stock had previously closed at $5.71.

Wall Street Analyst Weigh In

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

Orchid Island Capital Stock Down 0.5%

The firm has a fifty day simple moving average of $6.45 and a 200-day simple moving average of $6.75. The company has a market capitalization of $1.13 billion, a PE ratio of 3.84 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 firm had revenue of $59.97 million during the quarter, compared to the consensus estimate of $74.26 million.

Orchid Island Capital Announces Dividend

The company also recently announced a monthly dividend, which will be paid on Thursday, October 29th. Shareholders of record on Wednesday, September 30th will be issued a dividend of $0.10 per share. This represents a $1.20 dividend on an annualized basis and a yield of 21.1%. The ex-dividend date of this dividend is Wednesday, September 30th. Orchid Island Capital's dividend payout ratio (DPR) is currently 81.08%.

Orchid Island Capital declared that its Board of Directors has approved a stock repurchase program 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 buy up to 12.5% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's management believes its shares are undervalued.

Institutional Trading of Orchid Island Capital

Several institutional investors have recently added to or reduced their stakes in the business. 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 during the period. Caitong International Asset Management Co. Ltd boosted its position in Orchid Island Capital by 32,505.0% during the 4th 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 position in Orchid Island Capital by 157.2% during 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 during the period. State of Wyoming bought a new position in Orchid Island Capital during the 1st quarter worth $66,000. Finally, PNC Financial Services Group Inc. grew its stake 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 buying an additional 3,291 shares during the last quarter. 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.

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