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

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

Analysts Set New Price Targets

ORC has been the subject of a number of analyst reports. BTIG Research started coverage on Orchid Island Capital in a research report on Thursday, July 9th. They issued a “neutral” rating for the company. Weiss Ratings upgraded Orchid Island Capital from a “sell (d)” rating to a “sell (d+)” rating in a research note on Wednesday, July 15th. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Orchid Island Capital has an average rating of “Reduce” and a consensus price target of $7.50.

Orchid Island Capital Stock Performance

The firm has a market capitalization of $1.18 billion, a PE 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. The business’s fifty day simple moving average is $6.54 and its 200-day simple moving average is $6.80.

Orchid Island Capital (NYSE:ORC) 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 for the quarter, compared to analysts’ expectations of $74.26 million.

Orchid Island Capital Announces Dividend

The business also recently disclosed 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 c) annualized dividend and a dividend yield of 20.2%. The ex-dividend date of this dividend is Wednesday, September 30th. Orchid Island Capital’s dividend payout ratio is 81.08%.

Orchid Island Capital declared that its board has approved a stock repurchase plan on Monday, June 22nd that authorizes the company to buyback 25,000,000,000,000 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 generally a sign that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On Orchid Island Capital

Hedge funds have recently made changes to their positions in the company. Y Intercept Hong Kong Ltd increased its stake in Orchid Island Capital by 425.8% in 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. Bank of New York Mellon Corp bought a new position in shares of Orchid Island Capital during the 2nd quarter valued at approximately $3,899,000. Cetera Investment Advisers boosted its position in shares of Orchid Island Capital by 12.6% during the 1st quarter. Cetera Investment Advisers now owns 431,038 shares of the real estate investment trust’s stock valued at $3,030,000 after acquiring an additional 48,369 shares during the last quarter. Arrowstreet Capital Limited Partnership purchased a new position in shares of Orchid Island Capital in the first quarter valued at $2,894,000. Finally, Swiss National Bank grew its holdings in shares of Orchid Island Capital by 26.0% in the first quarter. Swiss National Bank now owns 362,800 shares of the real estate investment trust’s stock valued at $2,550,000 after purchasing an additional 74,800 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 (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.