Orchid Island Capital (NYSE:ORC) Shares Cross Below 200-Day Moving Average - Time to Sell?

Key Points

• Orchid Island Capital shares fell below their 200-day moving average of $6.61, trading as low as $4.96 and most recently near $5.05, signaling notable technical weakness.
• Analyst sentiment is cautious: Weiss Ratings maintained a “sell” assessment, BTIG Research rated the stock “neutral,” and MarketBeat reports a consensus rating of “Reduce” with a $7.50 price target.
• The REIT reported quarterly EPS of $0.26, below the $0.28 estimate, while maintaining a monthly dividend of $0.10 per share, equivalent to a 23.8% annualized yield; its board also authorized repurchases of up to 12.5% of outstanding shares.

Shares of Orchid Island Capital, Inc. (NYSE:ORC - Get Free Report) crossed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $6.61 and traded as low as $4.96. Orchid Island Capital shares last traded at $5.0450, with a volume of 4,259,185 shares trading hands.

Wall Street Analyst Weigh In

ORC has been the topic of several recent analyst reports. Weiss Ratings cut Orchid Island Capital from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday. BTIG Research began coverage on Orchid Island Capital in a research report on Thursday, July 9th. They set a "neutral" rating for the company. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. 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 Price Performance

The business has a 50 day moving average of $6.17 and a 200 day moving average of $6.61. The company has a market cap of $1.01 billion, a PE ratio of 3.41 and a beta of 1.60.

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 earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.02). The company had revenue of $59.97 million for the quarter, compared to analyst estimates of $74.26 million.

Orchid Island Capital Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Thursday, October 29th. Stockholders of record on Wednesday, September 30th will be paid a dividend of $0.10 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 23.8%. Orchid Island Capital's payout ratio is presently 81.08%.

Orchid Island Capital declared that its Board of Directors has initiated a stock repurchase plan on Monday, June 22nd that authorizes the company to buy back 25,000,000,000,000 outstanding shares. This buyback authorization authorizes the real estate investment trust to repurchase up to 12.5% of its shares through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Institutional Trading of Orchid Island Capital

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Arizona State Retirement System boosted its position in Orchid Island Capital by 10.0% during 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 acquiring an additional 5,018 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Orchid Island Capital during the 2nd quarter worth approximately $690,000. Ameritas Advisory Services LLC purchased a new position in shares of Orchid Island Capital during the 2nd quarter worth approximately $78,000. Bank of New York Mellon Corp bought a new position in shares of Orchid Island Capital in the 2nd quarter worth approximately $3,899,000. Finally, GAMMA Investing LLC raised its position in shares of Orchid Island Capital by 91.0% in the 2nd quarter. GAMMA Investing LLC now owns 3,650 shares of the real estate investment trust's stock worth $25,000 after acquiring an additional 1,739 shares in the last quarter. 32.74% of the stock is currently owned by hedge funds and other institutional investors.

Orchid Island Capital Company Profile

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.

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