Orchid Island Capital Sees Unusually Large Options Volume (NYSE:ORC)

Orchid Island Capital, Inc. (NYSE:ORC) was the recipient of some unusual options trading activity on Friday. Stock traders purchased 5,289 call options on the stock. This is an increase of approximately 595% compared to the average daily volume of 761 call options.

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 Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Bogart Wealth LLC grew its holdings in Orchid Island Capital by 64.2% in the second quarter. Bogart Wealth LLC now owns 3,940 shares of the real estate investment trust’s stock worth $28,000 after purchasing an additional 1,540 shares during the period. Prudential Financial Inc. grew its stake 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 valued at $92,000 after buying an additional 1,995 shares during the period. Barclays PLC grew 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 buying an additional 2,016 shares during the period. Nisa Investment Advisors LLC increased its position in Orchid Island Capital by 4.8% in the 2nd quarter. Nisa Investment Advisors LLC now owns 50,248 shares of the real estate investment trust’s stock valued at $358,000 after buying an additional 2,315 shares in the last quarter. Finally, CWM LLC raised its stake in Orchid Island Capital by 123.1% during the 3rd quarter. CWM LLC now owns 4,534 shares of the real estate investment trust’s stock worth $32,000 after buying an additional 2,502 shares during the period. Institutional investors and hedge funds own 32.74% of the company’s stock.

Orchid Island Capital Trading Down 5.6%

Shares of Orchid Island Capital stock opened at $7.81 on Friday. The business has a 50-day moving average price of $7.55 and a two-hundred day moving average price of $7.31. Orchid Island Capital has a 1-year low of $5.68 and a 1-year high of $9.01. The company has a market cap of $1.43 billion, a P/E ratio of 7.50 and a beta of 1.67.

Orchid Island Capital (NYSE:ORC) last announced its quarterly earnings data on Thursday, January 29th. The real estate investment trust reported $0.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.18 by $0.01. The business had revenue of $109.23 million during the quarter, compared to analyst estimates of $35.74 million. Equities research analysts forecast that Orchid Island Capital will post 0.37 EPS for the current fiscal year.

Orchid Island Capital Dividend Announcement

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

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the stock. Weiss Ratings reissued a “sell (d+)” rating on shares of Orchid Island Capital in a research note on Monday, December 29th. Compass Point started coverage on Orchid Island Capital in a research report on Monday, December 15th. They issued a “neutral” rating and a $7.50 price target on the stock. Finally, Wall Street Zen raised Orchid Island Capital from a “sell” rating to a “hold” rating in a research note on Saturday, November 1st. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Orchid Island Capital currently has an average rating of “Reduce” and an average target price of $7.50.

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.