is orchid island capital going out of businessis orchid island capital going out of business

"As a result, prepayment rates on the companys pass-through and interest-only securities remain elevated.". How do I buy shares of Orchid Island Capital? Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Since then, ORC stock has decreased by 1.4% and is now trading at $10.35. From the IR website: Orchid Island Capital, Inc. is a specialty finance company that invests in residential mortgage-backed securities on a leveraged basis. You can unsubscribe to any of the RC has a small market cap like ORC ($1.2B vs $810M) and pays a relatively high yield, currently equaling 10.8% at the current market price of $15.50 as of January 14, 2022. Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities. The business case for ORC is to invest in Agency RMBS, Residential Mortgage-Backed Securities, or loans that are guaranteed by a federal agency like Fannie Mae or Freddie Mac. We all love the dividends they pay out 90 % of the profits. Currency in USD 10.30 +0.23 (+2.28%) At close: 04:00PM EDT 10.20 -0.10 (-0.97%) After hours: 07:59PM EDT Dividend ORC New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect the Company. As a result, estimated total return on equity for the quarter comes to negative 4.9%. No fractional shares were issued in connection with the Reverse Stock Split. It helps to project a fair market value of Orchid Stock properly, considering its historical, The Probability of Bankruptcy SHOULD NOT be confused with the actual chance of a company to file for chapter 7, 11, 12, or 13 bankruptcy protection. AMD, Game-Changing News, Stock Price Rises, CFO, Chief Investment Officer, Sec. RC is trading at about the same price now as it was 2 months ago while ORC is down more than 20%. Forward-looking statements involve numerous risks and uncertainties. This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to the offering and the use of proceeds. Robert E. Cauley, 772-231-1400 Chairman and Chief Executive Officer, ir@orchidislandcapital.com Most REITs own physical real estate, lease the properties to tenants, and derive rental income which is used to pay dividends. Upgrade to MarketBeat All Access to add more stocks to your watchlist. After submitting your request, you will receive an activation email to the requested email address. This is known as an inverted yield curve, which can be a precursor to a recession. Mortgage-backed securities are an investment product representing a basket of pooled loans. The company has elected to be taxed as a real estate investment trust (REIT) for the United States federal income tax purposes. View, The market value of Orchid Island Capital, measure Orchid Island's market volatility, predict the probability of Orchid Island's future price movements. I tried to warn you guys this was going to happen but everyone was all giddy over the super high yield. Glad I sold them back at $5.07. The offering of these securities is being made only by means of a prospectus and a related prospectus supplement, which will be filed with the SEC. | Privacy Policy. To report a factual error in this article. Orchid Island Capital to Announce Fourth Quarter 2022 Results. However, based on the recent, upsized stock offering from RC announced on January 11, it looks like at least they are convinced that the economy is moving along just fine, along with the future prospects for lending. There are 4 Revenue Up revisions for RC (and 1 down), and 1 up revision for ORC. Seems somewhat higher compared to peers. As mentioned above, there are concerns with inflation, with rising interest rates, and with Fed tightening that could adversely affect credit markets in both commercial and residential financing. Making the world smarter, happier, and richer. Have a tip? If you are looking for a relatively high yield (currently ~10.8%), stable and growing REIT where you can see some growth and potentially realize some capital gains, take a closer look at Ready Capital (NYSE:RC). Orchid Island Capital's stock reverse split on Wednesday, August 31st 2022. WebNo. Orchid Island, which invests in agency residential mortgage-backed securities (RMBS), recently said that it expects to report a net loss of $0.34 per share in the first quarter. The Company also expects to grant the underwriter an option to purchase up to an additional 1,200,000 shares of common stock. The offering was made pursuant to the Companys existing shelf registration statement, which was declared effective by the Securities and Exchange Commission (the SEC) on February 10, 2020. The stock has badly lagged behind the S&P 500 Index, and we believe this under-performance is likely to continue. I am not a financial advisor so please do your own due diligence before making any buy or sell decisions.The race is not always to the swift, nor the battle to the strong, but that's the way to bet. Damon Runyon. This slide from the investor presentation illustrates the growth in distributable earnings since Q3 2020, which has grown steadily except for the Q1 2021 quarter when they took a loss on unrealized gains on MSRs: Distributable Earnings Growth Ready Capital Q3 Investor Presentation. I really felt they were struggling with NAV going down too. The outlook for ORC is not optimistic given the triple threat posed by the Fed of higher rates, easing bond purchases, and an expected reduction in assets. Today, the Board approved an increase in the number of shares of the Companys common stock available in the stock repurchase program for up to an additional 16,861,994 shares, bringing the remaining authorization under the stock repurchase program to 17,699,305 shares, representing approximately 10% of the Companys currently outstanding shares of common stock. Is Orchid Island Capital a Great Dividend Stock Its portfolio includes traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations; and structured Agency RMBS comprising interest only securities, inverse interest only securities, and principal only securities. The Reverse Stock Split affected all record holders of the Common Stock uniformly and did not affect any record holders percentage ownership interest in the Company, except for de minimis changes as a result of the elimination of fractional shares. Their accounts will be automatically adjusted to reflect the number of shares owned. Canary in a coal mine? In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Orchid Island Capital, Inc. Announces Public Offering To learn more, click here. American Consumer News, LLC dba MarketBeat 2010-2023. Torben Munch has an approval rating of 63% among the company's employees. Export data to Excel for your own analysis. Of course, the share price has been dropping so the effective yield may not change much. Currently, 3.1% of the shares of the company are short sold. This snippet from the Q3 2021 investor presentation from November 4, 2021, illustrates the point: RC Diversified Investment Strategy Q3 2021 investor presentation. But if you are looking for a good, long-term investment in the REIT space for some capital appreciation to go along with a high dividend yield, you may want to consider RC. I/we have a beneficial long position in the shares of RC either through stock ownership, options, or other derivatives. The company is currently trading over its recent book value of $4.94 per share, so investors may view the stock as overvalued. Those high yield stocks can also be found in other asset classes, in addition to BDCs. See rankings and related performance below. But I would caution new investors to be aware that the yield advertised may not result in the gains you are seeking. My RC common came from their buyout of Anworth. Because of this, the stock price for ORC has fallen 32% over the past 12 months. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc. VERO BEACH, Fla.-- ( BUSINESS WIRE )--Orchid Island Capital, Inc. (NYSE:ORC) ("Orchid or the "Company"), a real estate investment trust ("REIT"), today An investor that had 100 shares of stock prior to the reverse split would have 20 shares after the split. But Ive never thought of Orc as one of the better ones. The human psychology of markets is as fascinating and inscrutable to me as the financial side. Orchid Islands 19% dividend yield is enticing, but this stock has all the makings of a yield trap. Orchid Island is an externally managed, specialty finance REIT. Bank of America, JPMorgan, Goldman Sachs Set For Dividend Growth? Started selling $4 puts today for $0.55, which gives me a cost basis of $3.45 in ORC now. The company also had borrowing capacity exceeding its outstanding repurchase agreement balances of $3,769.4 million, spread across 20 active lenders. At Orchid Island Capital, we promise to treat your data with respect and will not share your information with any third party. The company's RMBS is backed by single-family residential mortgage loans, referred as Agency RMBS. View source version on businesswire.com: No cost, no obligation to buy anything ever. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. Please log in to your account or sign up in order to add this asset to your watchlist. During the same period in the prior year, the business posted $1.65 EPS. We help investors to determine the real value of Orchid Island using virtually all public information available. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Estimated book value was $4.34 per share, an estimated decrease of -$0.43 since September 2021. WebUSD 9.81 0.26 2.58% Orchid Island Capital Probability Of Bankruptcy is used to show its chance of financial distress over the next two years of operations under current economic Stocks that have a dividend decrease go down. Is Orchid Island Capital a good dividend stock? The offering of these securities was made only by means of a prospectus and a related prospectus supplement, which were previously filed with the SEC. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. ORC earnings call for the period ending September 30, 2020. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. Please. Important factors that could cause such differences are described in Orchid Island Capital, Inc.'s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2021. In the case of ORC, they also appear to be somewhat optimistic regarding the future share price potential by announcing an increase in the stock buyback program. The application of the net proceeds of the offering is subject to numerous possible events, factors and conditions, many of which are beyond the control of the Company and not all of which are known to it, including, without limitation, market conditions and those described under the heading Risk Factors in the prospectus supplement related to the offering and in the Companys Annual Report on Form 10-K for the year ended December 31, 2020, as updated by those risk factors included in the Companys subsequent filings under the Securities Exchange Act of 1934, as amended, which can be accessed at the SECs website at www.sec.gov. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. Orchid Island invests in residential mortgage-backed securities, either pass-through or structured agency RMBSs. NASDAQ data is at least 15 minutes delayed. WebOrchid Island Capital (NYSE:ORC) Stock Price Passes Below Two Hundred Day Moving Average of $10.82 Zolmax 4 days ago Orchid Island Capital, Inc. (NYSE:ORC) is Orchid Island Capital Announces Estimated First Quarter 2023 Results, April 2023 Monthly Dividend and March 31, 2023 RMBS Portfolio Characteristics. Ready Capital Corporation was founded in 2007 and is headquartered in New York, New York. This puts Torben Munch in the bottom 25% of approval ratings compared to other CEOs of publicly-traded companies. Our investment strategy focuses on, and our portfolio consists of, two categories of Agency RMBS: (i) traditional pass-through Agency RMBS, such as mortgage pass-through certificates and collateralized mortgage obligations issued by Fannie Mae, Freddie Mac or Ginnie Mae, and (ii) structured Agency RMBS, such as IOs, IIOs and POs, among other types of structured Agency RMBS. To offer a concise summary, my recommendation is to sell ORC if you own shares and buy RC instead. Whereas traditional REITs own a portfolio of properties, mortgage REITs are purely financial entities. Portfolio Visualizer backtest analysis Portfolio VisualizerIncome Comparison Portfolio Visualizer. Book value is even lower now than what they just reported. Adding to my position today on the 3% drop. However, there are too many red flags for Orchid Island to be considered an attractive investment, including the trusts multiple dividend cuts over the past few years and inconsistent profitability in that time. Mosaic Real Estate Credit Merger Ready Capital to Acquire Mosaic Real Estate Credit, Ready Capital to Acquire Mosaic Real Estate Credit. But Orchid Islands dividend payout still remains below the split-adjusted monthly dividend it was paying before 2021. completeness, timeliness, or correct sequencing of any of the Information on Orchid Island Capital Inc. - Investor Relations Orchid Island Capital does not have a long track record of dividend growth. The Companys actual results may differ from the Companys beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Orchid Island Capital (NYSE:ORC) pays an annual dividend of $1.92 per share and currently has a dividend yield of 18.25%. Should I buy Orchid Island Capital (ORC) - Zacks As a result, income investors would be better served buying higher-quality dividend stocks, with more sustainable payouts. Earnings Before Interest Taxes and Depreciation Amortization EBITDA, Earnings Before Interest Taxes and Depreciation Amortization USD, Net Current Assets as percentage of Total Assets, Net Cash Flow or Change in Cash and Cash Equivalents, Payment of Dividends and Other Cash Distributions, Net Cash Flow Investment Acquisitions and Disposals, Shareholders Equity Attributable to Parent, Selling General and Administrative Expense. I wrote this article myself, and it expresses my own opinions. The total return for the quarter was 0.84%, calculated by dividing the dividends per common share and the decrease in book value per common share by the beginning book value per common share. J.P. Morgan will serve as sole bookrunning manager for the offering. Learn More. I am ahead. Popular online brokerages with access to the U.S. stock market include WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab. Real-time analyst ratings, insider transactions, earnings data, and more. Orchid Island Capital, Inc. assumes no obligation to update forward-looking statements to reflect subsequent results, changes in assumptions or changes in other factors affecting forward-looking statements. They will not have any choice but to cut the dividend again probably in the very near future. 11.74. Orchid Island Capital to Announce First Quarter 2022 Results. The Company then expects to borrow against the Agency RMBS that it purchases with the net proceeds of this offering through repurchase agreements and use the proceeds of the borrowings to acquire additional Agency RMBS. As investors saw first-hand during the 2008 financial crisis, mortgage-backed securities can be highly volatile and risky. A summary of Q3 results sums up the strong financial position that RC finds itself in at the end of Q3 2021, poised for further growth in Q4 and into 2022. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.17% per year. The historical performance as indicated in the Q3 2021 investor presentation illustrates the key points increasing net income, growing distributable earnings, steady to slightly growing book value, and a dividend yield near 11% since Q4 2020: Q3 2021 Historical Performance Ready Capital Q3 Investor Presentation. When is Orchid Island Capital's next earnings date? Shares of the specialty finance company Orchid Island Capital (ORC 0.88%) dropped 11.4% today after the company announced first-quarter earnings guidance and an analyst downgraded the stock. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Orchid Island Capital, Inc. (NYSE:ORC) (the Company) announced today the closing of an underwritten public offering of 8,740,000 shares of its commo "As a result, prepayment rates on the companys pass-through and interest-only securities remain elevated.". Have a partial position in RC from acquisition of Answorth mortgage, (ANH) plus added some additional RC shares. Visit www.Knowledge-Investing.com for more info about me.I became deeply interested in the stock market beginning in late 2007 (bad timing for me but worse for my uncle) when I received an unexpected inheritance. Orchid Island Capital Completes One-for-five Reverse Stock Split Robert E. Cauley, 772-231-1400 Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Portfolio Breakdown Ready Capital Q3 2021 Results. They are down allmost 70% all time so yes you get a high div at the cost of your investment TrumpsColostomyBag99 2 yr. ago Ultimate yield trap.. any hope for it died when it tumbled after hitting 6 bucks earlier this year. The company was formerly known as Sutherland Asset Management Corporation and changed its name to Ready Capital Corporation in September 2018. Based on EPS estimates, Orchid Island Capital will have a dividend payout ratio of 225.88% in the coming year. That said, the companys most recent quarter showed some signs of strength. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Visit Performance Disclosure for information about the performance numbers displayed above. What is the dividend yield for Orchid Island Capital? At Orchid Island Capital, we promise to treat your data with respect and will not share your information with any third party. The tangible book value has been declining for most of the past year. When the spread between short-term rates and long-term rates compresses, profitability erodes. In-depth profiles and analysis for 20,000 public companies. contact@marketbeat.com A hold rating indicates that analysts believe investors should maintain any existing positions they have in ORC, but not buy additional shares or sell existing shares. If you are just buying today you can collect 1500 from orc or 1000 from RC. Robert E. Cauley, 772-231-1400 The day- to- day operations and management services related to the RMBS portfolio are externally managed for ORC by Bimini Capital. This is an estimated date of earnings release. Cost basis and return based on previous market day close. Moderna: Declining Performance And Relative Weakness, Verve Therapeutics Gains 20.74% In June as Ark Funds Invest, Smart Global, Progress Software rise; Nike falls, Friday, 6/30/2023, Understanding RSI: A Powerful Momentum Indicator for Stock Analysis. As long as the economy does not suddenly go bust due to inflation, Fed policy actions, or some new pandemic or black swan event, RC is ready for the future of lending capital for real estate transactions, including $1.2B in commercial originations/acquisitions, and $1B in residential mortgage originations. This included net interest expense of $4.2 million and total expenses of $5.0 million. individual investors who own 60% along with institutions invested in Orchid Island Capital, Inc. (NYSE:ORC) saw increase in their holdings value last week. On April 27rd, 2023, Orchid Island Capital reported Q1 results. * indicates the important links in the menu, After-Market: Please. That author made a good call then and that trend does not appear too likely to be reversed in the next few months. Most of Orchid Island's fundamental indicators, such as Probability Of Bankruptcy, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. 1Y 5Y Max 2.28% (1D) About ORC Orchid Island Capital, Inc., a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. You can sign up for additional alert options at any time. There may be delays, omissions, or inaccuracies Please do your own due diligence before investing. I also enjoy reading investment/financial and business information and following trends in technology and markets. Orchid Island Capital, Inc. Announces Full Exercise of Underwriters Option to Purchase Additional Shares and Closing of Public Offering of Common Stock, https://www.businesswire.com/news/home/20210305005552/en/. Compare Top Brokerages Here. April 08, 2022 04:03 PM Eastern Daylight Time. WebOrchid Island Capital's Enterprise Value for the quarter that ended in Mar. See Zacks' latest analysis free. Bei der Nutzung unserer Websites und Apps verwenden wir, unsere Websites und Apps fr Sie bereitzustellen, Nutzer zu authentifizieren, Sicherheitsmanahmen anzuwenden und Spam und Missbrauch zu verhindern, und, Ihre Nutzung unserer Websites und Apps zu messen, personalisierte Werbung und Inhalte auf der Grundlage von Interessenprofilen anzuzeigen, die Effektivitt von personalisierten Anzeigen und Inhalten zu messen, sowie, unsere Produkte und Dienstleistungen zu entwickeln und zu verbessern. Based on its recent closing price, the stock offers a 19% dividend yield. [BREAKING] Small Firm Wins $1 Billion Army Contract for Breakthrough "Living Software" (Ad). Orchid Island Capital, Inc. (NYSE:ORC) (the Company) announced today the closing of an underwritten public offering of 9,200,000 shares of its common stock, Estimated GAAP net loss of $0.27 per share, including a loss of estimated -$0.49 per share on RMBS and derivative realized and unrealized losses. Fuller Rises On Hopes For Rebound, J.P. Morgan Global FICC team chooses agency MBS as top pick in Q3 outlook, [BREAKING] New "Living Software" to Revolutionize Warfare, Orchid Island Capital (NYSE:ORC) Shares Pass Below Two Hundred Day Moving Average of $10.82, Orchid Island Capital Announces June 2023 Monthly Dividend and May 31, 2023 RMBS Portfolio Characteristics, Orchid Island Capital Announces May 2023 Monthly Dividend and April 30, 2023 RMBS Portfolio Characteristics, Q1 2023 Orchid Island Capital Inc Earnings Call, Orchid Island Capital Announces First Quarter 2023 Results, Bimini Capital Management to Announce First Quarter 2023 Results. Or just a bad bird getting its wings trimmed? A better option might be Ready Capital, with a 10.8% yield and a stronger financial position going into 2022. You must click the activation link in order to complete your subscription. Statements herein relating to matters that are not historical facts, including, but not limited to, statements regarding the Reverse Stock Split, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. of common stock, down 15% from prior dividend of $0.065. That is insane, compare that to MITT, NYMT, TWO, IVR, CIM, NLY. Stocks that have dividend increase go up. If you wish to go to ZacksTrade, click OK. Wenn Sie Ihre Auswahl anpassen mchten, klicken Sie auf Datenschutzeinstellungen verwalten. VERO BEACH, Fla.-- ( BUSINESS WIRE )--Orchid They also offer multifamily, residential, and bridge financing. On December 1, 2021, Bimini hired Patrick Doyle to lead those services. In connection with the offering, the Company has granted the underwriters a 30-day option to purchase up to 1,050,000 additional shares of common stock. Am considering selling FBRT shares acquired from Capstead Mortgage (CMO) acquisition and replacing with Starwood (STWD) and/or RC. Sign-up to receive the latest news and ratings for Orchid Island Capital and its competitors with MarketBeat's FREE daily newsletter. If you are still in RC for 2 yrs you are collecting 1000 if no cuts. Orchid Island Capital's stock reverse split on Wednesday, August 31st 2022. Orchid Island Capital Stock Forecast, Price & News If you have been in orc for 2 yrs you have collected about 4000 on 10000 invested 40% . seekingalpha.com - April 18 at 4:27 PM. Go back to all my ORC posts . What is Orchid Island Capital's stock price today? Well today your Capital losses erase any dividends you've been collecting and as the stock price and dividend continues to fall this year you will most likely never recover your losses. Our daily ratings and market update email newsletter. Orchid Island Capital, Inc. has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes. Staying put & collecting every month. The reader is cautioned that such forward-looking statements are based on information available at the time and on management's good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in such forward-looking statements. Image source: The Motley Fool. They have been managing ORC since 2013 and recently amended the agreement to continue managing their operations. For example, many REITs, MLPs, and some CEFs and ETFs offer very high yields that are not sustainable, and investors end up counting more losses than gains over time. This brings us to Orchid's earnings. By providing your email address below, you are providing consent to Orchid Island Capital to send you the requested Investor Email Alert updates. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. New risks and uncertainties arise over time, and it is not possible to predict those events or how they may affect the Company. VERO BEACH, Fla.--(BUSINESS WIRE)--Orchid Island Capital, Inc. (NYSE:ORC) ("Orchid or the "Company"), a real estate investment trust ("REIT"), today announced that it has completed the previously announced reverse stock split of the outstanding shares of the Companys common stock, par value $0.01 per share (the Common Stock), at a ratio of one-for-five (the Reverse Stock Split), effective at 5:00 p.m. Eastern Time today (the Effective Time). The Motley Fool has no position in any of the stocks mentioned. First, lets look at what ORC does to make money. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. The track record of M&A activity has proven to be successful thus far. The outlook for mortgage REITs has deteriorated as the Federal Reserve continues to raise interest rates. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Orchid Island Capital Announces Estimated First Quarter 2023 Results, April 2023 Monthly Dividend and March 31, 2023 RMBS Portfolio Characteristics. With a volatile dividend history, Orchid Island is not an appealing choice for investors looking for steady dividend payouts from year to year.