Orchid Island Capital (NYSE:ORC) Reaches New 52-Week Low – Should You Sell?

Shares of Orchid Island Capital, Inc. (NYSE:ORC) reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $6.38 and last traded at $6.3750, with a volume of 788012 shares. The stock had previously closed at $6.47.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Wall Street Zen lowered Orchid Island Capital from a “hold” rating to a “sell” rating in a report on Tuesday, May 5th. BTIG Research assumed coverage on Orchid Island Capital in a research report on Thursday, July 9th. They issued a “neutral” rating for the company. Finally, Weiss Ratings upgraded shares of 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 issued a Sell rating to the stock. Based on data from MarketBeat.com, Orchid Island Capital has a consensus rating of “Reduce” and a consensus price target of $7.50.

Orchid Island Capital Stock Performance

The company has a debt-to-equity ratio of 0.34, a current ratio of 509.34 and a quick ratio of 509.34. The stock has a market capitalization of $1.29 billion, a price-to-earnings ratio of 4.36 and a beta of 1.55. The stock has a 50-day moving average of $6.73 and a 200 day moving average of $7.12.

Orchid Island Capital (NYSE:ORC) last posted its earnings results on Thursday, July 23rd. The real estate investment trust reported $0.26 earnings per share (EPS) 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 the consensus estimate of $74.26 million.

Orchid Island Capital Announces Dividend

The firm also recently declared a monthly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, July 31st will be given a dividend of $0.10 per share. The ex-dividend date of this dividend is Friday, July 31st. This represents a c) annualized dividend and a yield of 18.6%. Orchid Island Capital’s payout ratio is 81.08%.

Orchid Island Capital declared that its Board of Directors 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 purchase up to 12.5% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its stock is undervalued.

Hedge Funds Weigh In On Orchid Island Capital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. GAMMA Investing LLC boosted its holdings in Orchid Island Capital by 91.0% in the second quarter. GAMMA Investing LLC now owns 3,650 shares of the real estate investment trust’s stock valued at $25,000 after acquiring an additional 1,739 shares during the last quarter. Prudential Financial Inc. lifted its position in shares of Orchid Island Capital by 17.8% in the 2nd quarter. Prudential Financial Inc. now owns 13,189 shares of the real estate investment trust’s stock worth $92,000 after purchasing an additional 1,995 shares during the period. Barclays PLC boosted its stake in shares of Orchid Island Capital by 1.0% in the 3rd quarter. Barclays PLC now owns 203,626 shares of the real estate investment trust’s stock valued at $1,427,000 after purchasing an additional 2,016 shares during the last quarter. CreativeOne Wealth LLC increased its position in shares of Orchid Island Capital by 11.8% during the fourth quarter. CreativeOne Wealth LLC now owns 19,248 shares of the real estate investment trust’s stock worth $139,000 after buying an additional 2,025 shares during the period. Finally, PNC Financial Services Group Inc. lifted its holdings in Orchid Island Capital by 64.0% in the fourth quarter. PNC Financial Services Group Inc. now owns 6,413 shares of the real estate investment trust’s stock valued at $46,000 after buying an additional 2,502 shares during the period. 32.74% of the stock is owned by institutional investors.

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.