Orchid Island Capital (NYSE:ORC) Hits New 1-Year Low – Should You Sell?

Shares of Orchid Island Capital, Inc. (NYSE:ORC) hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $6.30 and last traded at $6.3150, with a volume of 688890 shares traded. The stock had previously closed at $6.35.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports 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. BTIG Research assumed coverage on shares of Orchid Island Capital in a research report on Thursday, July 9th. They set a “neutral” rating on the stock. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Reduce” and a consensus target price of $7.50.

Orchid Island Capital Trading Down 0.2%

The company’s 50 day moving average price is $6.65 and its two-hundred day moving average price is $6.87. The firm has a market cap of $1.26 billion, a PE ratio of 4.28 and a beta of 1.55. The company has a quick ratio of 509.34, a current ratio of 509.34 and a debt-to-equity ratio of 0.34.

Orchid Island Capital (NYSE:ORC) last released its 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 firm had revenue of $59.97 million during 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 Tuesday, September 29th. Shareholders of record on Monday, August 31st will be issued a dividend of $0.10 per share. The ex-dividend date is Monday, August 31st. This represents a c) dividend on an annualized basis and a yield of 18.9%. Orchid Island Capital’s dividend payout ratio is currently 81.08%.

Orchid Island Capital announced that its Board of Directors has initiated a stock repurchase plan on Monday, June 22nd that authorizes the company to buyback 25,000,000,000,000 outstanding shares. This buyback authorization authorizes the real estate investment trust to reacquire up to 12.5% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s management believes its shares are undervalued.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of ORC. GAMMA Investing LLC increased its position in shares of Orchid Island Capital by 91.0% during the second quarter. GAMMA Investing LLC now owns 3,650 shares of the real estate investment trust’s stock worth $25,000 after purchasing an additional 1,739 shares in the last quarter. PNC Financial Services Group Inc. raised its stake in Orchid Island Capital by 64.0% in the 4th quarter. PNC Financial Services Group Inc. now owns 6,413 shares of the real estate investment trust’s stock worth $46,000 after acquiring an additional 2,502 shares during the last quarter. Caitong International Asset Management Co. Ltd lifted 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 worth $47,000 after acquiring an additional 6,501 shares during the period. McIlrath & Eck LLC lifted its holdings in shares of Orchid Island Capital by 157.2% during the first quarter. McIlrath & Eck LLC now owns 7,418 shares of the real estate investment trust’s stock worth $52,000 after purchasing an additional 4,534 shares during the period. Finally, Raymond James Financial Inc. purchased a new stake in Orchid Island Capital in the second quarter valued at approximately $55,000. Institutional investors own 32.74% of the company’s stock.

Orchid Island Capital Company Profile

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.