Orchid Island Capital (NYSE:ORC) Announces Earnings Results

by · The Markets Daily

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

Orchid Island Capital Stock Performance

ORC opened at $7.81 on Friday. Orchid Island Capital has a 1 year low of $5.68 and a 1 year high of $9.01. The firm has a 50 day moving average price of $7.55 and a 200 day moving average price of $7.31. The company has a market cap 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 announced a monthly dividend, which will be paid on Thursday, February 26th. Investors of record on Friday, January 30th will be given 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 of this dividend is Friday, January 30th. Orchid Island Capital’s dividend payout ratio is 293.88%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Raymond James Financial Inc. purchased a new position in Orchid Island Capital during the 2nd quarter worth approximately $55,000. BNP Paribas Financial Markets lifted its stake in 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 acquiring an additional 5,457 shares in the last quarter. US Bancorp DE lifted its stake in Orchid Island Capital by 49.2% in 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. Envestnet Asset Management Inc. acquired a new stake in Orchid Island Capital during the 2nd quarter worth about $75,000. Finally, AQR Capital Management LLC purchased a new position in Orchid Island Capital during the 1st quarter valued at about $84,000. 32.74% of the stock is owned by hedge funds and other institutional investors.

Orchid Island Capital News Summary

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.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on ORC shares. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Orchid Island Capital in a research note on Monday, December 29th. Compass Point assumed coverage on shares of Orchid Island Capital in a research report on Monday, December 15th. They set a “neutral” rating and a $7.50 price target on the stock. Finally, Wall Street Zen raised shares of Orchid Island Capital from a “sell” rating to a “hold” rating in a research note on Saturday, November 1st. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Orchid Island Capital presently has a consensus rating of “Reduce” and an average price target of $7.50.

View Our Latest Report on Orchid Island Capital

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.

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