Short Interest in Orchid Island Capital, Inc. (NYSE:ORC) Drops By 27.7%

Key Points

• Short interest in Orchid Island Capital fell 27.7% in April to 13,628,583 shares, equal to 6.8% of the float and a short-interest ratio of 2.9 days.
• The company declared a $0.10 monthly dividend (ex-dividend April 30) implying a 16.9% yield and a 160% payout ratio, while quarterly EPS of $0.26 met estimates but reported revenue missed badly (≈−$12.56M vs. $33.03M expected), highlighting sustainability concerns.
• Major institutional investors (Vanguard, State Street, Geode, etc.) have increased stakes and institutions own about 32.7% of the stock, yet analysts are mixed with an average rating of "Reduce" and a $7.50 average price target versus a recent share price near $7.09.

Orchid Island Capital, Inc. (NYSE:ORC - Get Free Report) saw a significant decline in short interest during the month of April. As of April 15th, there was short interest totaling 13,628,583 shares, a decline of 27.7% from the March 31st total of 18,841,769 shares. Based on an average trading volume of 4,714,658 shares, the short-interest ratio is currently 2.9 days. Currently, 6.8% of the shares of the stock are sold short.

Orchid Island Capital Price Performance

Shares of NYSE ORC traded up $0.06 during trading on Friday, reaching $7.09. The company had a trading volume of 5,023,718 shares, compared to its average volume of 6,190,117. Orchid Island Capital has a 52 week low of $6.62 and a 52 week high of $8.40. The stock has a market cap of $1.42 billion, a PE ratio of 9.45 and a beta of 1.58. The company has a debt-to-equity ratio of 0.26, a quick ratio of 509.34 and a current ratio of 509.34. The business's 50 day moving average price is $7.18 and its 200-day moving average price is $7.38.

Orchid Island Capital (NYSE:ORC - Get Free Report) last announced its earnings results on Thursday, April 23rd. The real estate investment trust reported $0.26 earnings per share for the quarter, hitting analysts' consensus estimates of $0.26. The company had revenue of ($12.56) million during the quarter, compared to the consensus estimate of $33.03 million.

Orchid Island Capital Cuts Dividend

The firm also recently declared a monthly dividend, which will be paid on Thursday, May 28th. Investors of record on Thursday, April 30th will be paid a dividend of $0.10 per share. This represents a c) dividend on an annualized basis and a dividend yield of 16.9%. The ex-dividend date of this dividend is Thursday, April 30th. Orchid Island Capital's payout ratio is 160.00%.

Institutional Investors Weigh In On Orchid Island Capital

A number of institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. raised its stake in shares of Orchid Island Capital by 23.4% during the fourth quarter. Vanguard Group Inc. now owns 9,767,670 shares of the real estate investment trust's stock worth $70,327,000 after buying an additional 1,850,221 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Orchid Island Capital by 3.9% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,953,916 shares of the real estate investment trust's stock worth $27,717,000 after buying an additional 149,251 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Orchid Island Capital by 25.6% during the fourth quarter. Geode Capital Management LLC now owns 3,903,240 shares of the real estate investment trust's stock worth $28,109,000 after buying an additional 795,210 shares during the last quarter. Invesco Ltd. raised its stake in shares of Orchid Island Capital by 10.3% during the third quarter. Invesco Ltd. now owns 3,165,436 shares of the real estate investment trust's stock worth $22,190,000 after buying an additional 294,547 shares during the last quarter. Finally, State Street Corp raised its stake in shares of Orchid Island Capital by 18.8% during the fourth quarter. State Street Corp now owns 3,059,581 shares of the real estate investment trust's stock worth $22,394,000 after buying an additional 484,209 shares during the last quarter. 32.74% of the stock is owned by institutional investors.

Analyst Ratings Changes

ORC has been the subject of a number of research analyst reports. Wall Street Zen raised shares of Orchid Island Capital from a "sell" rating to a "hold" rating in a research note on Monday. Weiss Ratings downgraded shares of Orchid Island Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, April 6th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Orchid Island Capital currently has an average rating of "Reduce" and an average price target of $7.50.

About Orchid Island Capital

Orchid Island Capital is a real estate investment trust that specializes in investing in residential mortgage‐backed securities (RMBS), with a primary focus on mortgage pass‐through securities guaranteed by the Government National Mortgage Association (Ginnie Mae). Structured to elect and maintain status as a REIT under the U.S. Internal Revenue Code, the company's principal business strategy involves acquiring pools of U.S. residential mortgages in the secondary market and holding them to generate interest income.

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