Orchid Island Capital (NYSE:ORC) Issues Quarterly Earnings Results, Beats Expectations By $0.01 EPS

by · The Cerbat Gem

Orchid Island Capital (NYSE:ORC – Get Free Report) released its quarterly earnings data on Thursday. The real estate investment trust reported $0.19 EPS for the quarter, beating the consensus estimate of $0.18 by $0.01, Zacks reports. The company had revenue of $109.23 million during the quarter, compared to analysts’ expectations of $35.74 million.

Orchid Island Capital Stock Down 5.6%

ORC stock opened at $7.81 on Friday. Orchid Island Capital has a 52-week low of $5.68 and a 52-week high of $9.01. The stock’s 50 day moving average is $7.55 and its two-hundred day moving average is $7.31. The company has a market capitalization of $1.43 billion, a PE ratio of 7.50 and a beta of 1.67.

Orchid Island Capital Announces Dividend

The firm also recently disclosed a monthly dividend, which will be paid on Thursday, February 26th. Shareholders of record on Friday, January 30th will be paid a dividend of $0.12 per share. This represents a c) dividend on an annualized basis and a yield of 18.4%. The ex-dividend date is Friday, January 30th. Orchid Island Capital’s dividend payout ratio (DPR) is 293.88%.

Analyst Ratings Changes

A number of research firms have recently issued reports on ORC. Wall Street Zen upgraded Orchid Island Capital from a “sell” rating to a “hold” rating in a research note on Saturday, November 1st. Weiss Ratings restated a “sell (d+)” rating on shares of Orchid Island Capital in a report on Monday, December 29th. Finally, Compass Point assumed coverage on shares of Orchid Island Capital in a research report on Monday, December 15th. They issued a “neutral” rating and a $7.50 price objective for the company. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Reduce” and an average target price of $7.50.

Get Our Latest Stock Report on ORC

Orchid Island Capital News Roundup

Here are the key news stories impacting Orchid Island Capital this week:

  • Positive Sentiment: Q4 results beat consensus on EPS and showed much higher-than-expected revenue, which supports near-term fundamentals and cash flow expectations. Read More.
  • Positive Sentiment: Unusual options activity: buyers purchased ~5,289 call contracts (a ~595% jump vs. average), signaling some investors are positioning for upside. (Reported market options flow)
  • Positive Sentiment: Market narratives framing ORC as undervalued have surfaced, which can attract value-oriented buyers. Read More.
  • Neutral Sentiment: Company filed its formal Q4 disclosure and slide deck with results and details on operations and portfolio performance — useful for modelling but not an immediate catalyst on its own. Read More.
  • Neutral Sentiment: Earnings call transcript is available for investors wanting management commentary about interest-rate sensitivity, servicing economics, and capital allocation. Read More.
  • Negative Sentiment: Analyst initiation/coverage from Compass Point assigned a Neutral rating and $7.50 price target and warned that dividend payouts could limit book-value growth and that political/policy risks are meaningful — this raises concerns about long-term NAV expansion and may cap upside. Read More.

Institutional Trading of Orchid Island Capital

Hedge funds have recently made changes to their positions in the stock. Raymond James Financial Inc. acquired a new stake in Orchid Island Capital in the second quarter valued at $55,000. US Bancorp DE grew its holdings in Orchid Island Capital by 49.2% during the 3rd quarter. US Bancorp DE now owns 10,260 shares of the real estate investment trust’s stock worth $72,000 after acquiring an additional 3,382 shares in the last quarter. BNP Paribas Financial Markets increased its position in shares of Orchid Island Capital by 112.7% in the 2nd quarter. BNP Paribas Financial Markets now owns 10,300 shares of the real estate investment trust’s stock worth $72,000 after purchasing an additional 5,457 shares during the last quarter. Envestnet Asset Management Inc. acquired a new stake in shares of Orchid Island Capital in the 2nd quarter valued at about $75,000. Finally, AQR Capital Management LLC acquired a new stake in shares of Orchid Island Capital in the 1st quarter valued at about $84,000. Institutional investors and hedge funds own 32.74% of the company’s stock.

About Orchid Island Capital

(Get Free Report)

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.

Further Reading