is orchid island capital going out of business

View our ORC earnings forecast. 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. It is possible that ORC could cut the dividend again in the next month or two. Orchid Island cut its dividend several times in the past few years due to poor fundamental performance. Are investors shorting Orchid Island Capital? View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. 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. One share of ORC stock can currently be purchased for approximately $10.35. $10.35 Is this happening to you frequently? However, the company also recorded net realized and unrealized gains of $12.7 million on RMBS and derivative instruments, contributing to earnings. When the spread between short-term rates and long-term rates compresses, profitability erodes. Any thoughts? Seeking Alpha's Disclosure: Past performance is no guarantee of future results. 2023 was $276.17 Mil. The day- to- day operations and management services related to the RMBS portfolio are externally managed for ORC by Bimini Capital. the net interest margin is getting crushed; the prepayments are at high levels, and I assure you that their Book value today is lower than what they reported at the end of December. The score is used to predict the probability of a firm or a fund experiencing financial distress within the next 24 months. Ready Capital Corporation was founded in 2007 and is headquartered in New York, New York. The scores are based on the trading styles of Value, Growth, and Momentum. WebOrchid Island Capital's Enterprise Value for the quarter that ended in Mar. What is Orchid Island Capital's stock symbol? There is not enough analysis data for Orchid Island Capital. What is Torben Munch's approval rating as Orchid Island Capital's CEO? When did Orchid Island Capital's stock split? All forward-looking statements speak only as of the date on which they are made. Don't forget, in the last ORC conference call, management told you they see no scenario where they need to cut the dividend. Orchid Islands 19% dividend yield is enticing, but this stock has all the makings of a yield trap. The comparison to RC is not totally apples to apples as the market segments that RC lends to include mostly commercial and multifamily, versus residential only for ORC. I dont trust 5 buck Ret. Orchid Island Capital Inc (ORC) Q1 2019 Earnings Call Transcript, 77% of Warren Buffett's $366 Billion Portfolio Is Invested in Only 6 Stocks, 1 Growth Stock Down 78% You'll Regret Not Buying on the Dip, 5 Stocks That Could Be Easy Wealth Builders. The Company has no shares of Preferred Stock outstanding. There is also a lot going on right now with changes in the mortgage market, and considering that the stock has run up significantly over the past year, investors may also find this an opportune time to take gains. The book value per common share stood at $11.55 as of March 31, 2023. 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. This is a huge dividend yield, considering the average dividend yield of the S&P 500 Index is currently 1.6%. 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 have no business relationship with any company whose stock is mentioned in this article. No fractional shares were issued in connection with the Reverse Stock Split. Consummation of the offering and the application of the net proceeds of the offering are 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. I really felt they were struggling with NAV going down too. The company was formerly known as Sutherland Asset Management Corporation and changed its name to Ready Capital Corporation in September 2018. What ETFs hold Orchid Island Capital's stock? long term rate should go higher when fed will hike. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the shares or any other securities, nor shall there be any sale of such shares or any other securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. As I am reading this, I am wondering how can ORC keep paying out such a high dividend yield when the losses are piling up and book value is dropping? 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. I'm wondering if other brokers made a similar split, or it's just mine doing this. capital gains, take a closer look at Ready Capital (. Investor Relations NYSE: ORC 10.04 -0.04 ( -0.40% ) 20 minutes minimum delay | June 09, 2023 | 4:00 PM Corporate Overview Orchid Island Capital, Inc. is a Click the link below and we'll send you MarketBeat's guide to pot stock investing and which pot companies show the most promise. Chairman and Chief Executive Officer, ir@orchidislandcapital.com The company's RMBS is backed by single-family residential mortgage loans, referred as Agency RMBS. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. First, lets look at what ORC does to make money. Earnings for Orchid Island Capital are expected to grow by 347.37% in the coming year, from $0.19 to $0.85 per share. Please do your own due diligence before investing. Only 30.15% of the stock of Orchid Island Capital is held by institutions. Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. Have a tip? Orchid Islands eroding fundamentals have caused a significant drop in its dividend payments to shareholders in the past several years. NASDAQ data is at least 15 minutes delayed. Plus, ORC info will be updated daily in your Zacks.com Portfolio Tracker - also free. The real estate investment trust reported $1.10 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.10. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. This is still one of the best plus buying back more shares. This brings us to Orchid's earnings. Just got my 1099 from Ally today, and they split the dividends into 30% ordinary and 70% nondiv distribution (reducing my cost basis). Stockholders that would hold a fractional share as a result of the Reverse Stock Split will receive a cash payment in lieu of such fractional shares. In addition, as part of the amended agreement, Bimini will be taking over the performance of repurchase agreement trading, clearing and administrative services from AVM, who were previously charged with those activities on behalf of ORC. Orchid maintained a strong liquidity position, with $197.0 million in cash, cash equivalents, and unpledged RMBS, which represented 44% of stockholders equity as of March 31, 2023. Ready Capital is another mortgage REIT that offers capital to real estate financing deals. Apparently, Bimini convinced ORC that they can do a better job than AVM, and they are already being paid to externally manage everything else. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. ETFs with the largest weight of Orchid Island Capital (NYSE:ORC) stock in their portfolio include Invesco KBW High Dividend Yield Financial ETF (KBWD) and VanEck Mortgage REIT Income ETF (MORT).iShares Mortgage Real Estate ETF (REM). Chairman and Chief Executive Officer, Internet Explorer presents a security risk. Its share count has skyrocketed since 2013. The estimated total return for the quarter was a loss of -4.5% or -$0.235. Book value is even lower now than what they just reported. Short-term bond yields have risen, sometimes offering a higher yield then longer-term bonds. Robert E. Cauley, 772-231-1400 The company has elected to be taxed as a real estate investment trust (REIT) for the United States federal income tax purposes. In the past three months, Orchid Island Capital insiders have not sold or bought any company stock. Back in August of 2021, an SA article by Sensor Unlimited discussed the danger of the declining book value of ORC and cautioned about being drawn in by the high yield. To report a factual error in this article. I am not receiving compensation for it (other than from Seeking Alpha). 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. See the Full List of Stocks To Beat Earnings. Entering text into the input field will update the search result below. 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. The company employs 2,018 workers across the globe. Like ORC, they are externally managed, and in the case of RC, Waterfall Asset Management provides management advisory services. J.P. Morgan will serve as sole bookrunning manager for the offering. Only 0.51% of the stock of Orchid Island Capital is held by insiders. Please. If you have an ad-blocker enabled you may be blocked from proceeding. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. & Director. Orchid Island Capital, Inc., a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. Our daily ratings and market update email newsletter. I took the profits last year when it was high at 6$definitely a good choice. Orchid Island Capital saw a decrease in short interest in the month of June. Delayed quotes by FIS. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. The Common Stock will continue trading on the NYSE under the symbol ORC with a new CUSIP number (68571X301). Orchid reported a net income of $3.5 million, or $0.09 per common share, in the first quarter. You can sign up for additional alert options at any time. Orchid Island invests in residential mortgage-backed securities, either pass-through or structured agency RMBSs. I wrote this article myself, and it expresses my own opinions. 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. 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. Orchid Island Capital (NYSE: ORC) stock drops 3.1% after the mortgage REIT cuts its monthly cash dividend due to the rapid compression of its net interest It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. The Company intends to use the net proceeds from this offering to originate or acquire the Company's target assets consistent with its investment strategy and for general corporate purposes. Invest better with The Motley Fool. Copies of the prospectus and prospectus supplement related to this offering may be obtained, when available, from J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, telephone: 1-866-803-9204. The trust has a sizable amount of debt on the balance sheet, and is issuing shares at an alarming pace. VERO BEACH, Fla., August 30, 2022 -- ( BUSINESS WIRE )--Orchid Island Capital, Inc. The offering is being 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. Adding to my position today on the 3% drop. Even if you don't own ORC you should still buy RC ! ET ORC earnings call for the period ending June 30, 2020. Or just a bad bird getting its wings trimmed? 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 They have been managing ORC since 2013 and recently amended the agreement to continue managing their operations. How often does Orchid Island Capital pay dividends? This is known as an inverted yield curve, which can be a precursor to a recession. Orchid Island Capital, Inc. has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes. Oct 30, 2020, 10:00 a.m. See what's happening in the market right now with MarketBeat's real-time news feed. 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. However, the outlook for mortgage REITs is challenged, and Orchid Islands dividend yield may still not be sustainable even after multiple dividend cuts in the past several years. What is Orchid Island Capital's stock price today? Currently, 3.1% of the shares of the company are short sold. 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. The company is currently trading over its recent book value of $4.94 per share, so investors may view the stock as overvalued. Orchid Island Capital, Inc. to Issue Monthly Dividend of $0.16 (NYSE:ORC) marketbeat.com - April 14 at 8:23 AM. Orchid Island is an externally managed, specialty finance REIT. Am considering selling FBRT shares acquired from Capstead Mortgage (CMO) acquisition and replacing with Starwood (STWD) and/or RC. But Orchid Islands dividend payout still remains below the split-adjusted monthly dividend it was paying before 2021. How were Orchid Island Capital's earnings last quarter? We will see. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since then, ORC stock has decreased by 1.4% and is now trading at $10.35. As of January 15, 2022, there are 6 EPS up revisions for RC, 0 for ORC but 1 down revision. 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 The consensus among Wall Street equities research analysts is that investors should "hold" ORC shares. Holders of Common Stock who hold in street name in their brokerage accounts do not have to take any action as a result of the Reverse Stock Split. Read our dividend analysis for ORC. But Ive never thought of Orc as one of the better ones. History will show you that RC cuts more then ORC . Image source: The Motley Fool. 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. After submitting your request, you will receive an activation email to the requested email address. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. I have seen this happening since div was .14 back in 2016, back then I thought it was a good move to get 40k worth of it and now I am sitting with 16k in red, I need years of collecting div just to get out even, hopefully it doesn't get to $0 anytime in this decade. Whereas traditional REITs own a portfolio of properties, mortgage REITs are purely financial entities. 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. That author made a good call then and that trend does not appear too likely to be reversed in the next few months. Zacks' proprietary data indicates that Orchid Island Capital, Inc. is currently rated as a Zacks Rank 4 and we are expecting a below average return from the ORC "The companys net interest margin has also been impacted by the persistence of longer-term rates remaining at or below levels observed earlier in 2021," Orchid Island said. This represents a $1.92 annualized dividend and a dividend yield of 18.55%. The company originates, acquires, finances, and services small balance commercial (SBC) loans, small business administration (SBA) loans, and residential mortgage loans, as well as mortgage-backed securities collateralized primarily by SBC loans, or other real estate-related investments. ORC has a Price-to Sales of 38.80!!! Orchid Island Capital, Inc. (ORC) Q3 2020 Earnings Call Transcript, Orchid Island Capital Inc (ORC) Q1 2020 Earnings Call Transcript. As a result, income investors would be better served buying higher-quality dividend stocks, with more sustainable payouts. Unlike more traditional methods such as, By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations, When running Orchid Island's price analysis, check to, All portfolio management and optimization tools to improve performance of your portfolios, Find actively-traded funds from around the world traded on over 30 global exchanges, Search for actively traded equities including funds and ETFs from over 30 global markets, Analyze risk-adjusted returns against different time horizons to find asset-allocation targets. But I would caution new investors to be aware that the yield advertised may not result in the gains you are seeking. The Company intends to use the net proceeds of this offering to invest in a targeted mix of Agency RMBS and for general corporate purposes. Orchid Island Capital is losing book value, suffering from margin compression, and recently cut the dividend to reduce expenses. Forward-looking statements are not historical in nature and can be identified by words such as anticipate, estimate, will, should, expect, believe, intend, seek, plan and similar expressions or their negative forms, or by references to strategy, plans, or intentions. To see all exchange delays and terms of use please see Barchart's disclaimer. The return still blows away all the rest . Neither stock is covered by the SA quant ratings so I will have to do my own rating analysis. Portfolio Breakdown Ready Capital Q3 2021 Results. Orchid Island Capital is losing book value, suffering from margin compression, and recently cut the dividend to reduce expenses. If the real value is higher than the market price, Orchid Island Capital is considered to be undervalued, and we provide a buy recommendation. Yes. You have already added five stocks to your watchlist. I've not had the opportunity to research RC, so your thoughts on that investment is very much appreciated. 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. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. 1 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Orchid Island Capital in the last twelve months. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. If orc would cut to 12% 1200 and most likely looking at history RC you will probably collect about 500 after they cut.. when it comes to cash flow no comparison.. Constellation Brands Stock Swings After Earnings Announcement, Freeport-McMoRan: Analysts Bullish Ahead Of Growth Copper's Spurt, The Nike Rebound Is Over; Buying Opportunity Ahead, Dividend King H.B. 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. Most REITs own physical real estate, lease the properties to tenants, and derive rental income which is used to pay dividends. Despite the loss, the estimated results are expected to be much better than when the company reported a loss of $1.41 per share in the first quarter of 2020. As evidenced by the downturn in Q1 2021, there is some risk that RC could under-perform in the first quarter of 2022 as well. ZacksTrade and Zacks.com are separate companies. Those high yield stocks can also be found in other asset classes, in addition to BDCs. The ex-dividend date of this dividend is Thursday, June 29th. Investors of record on Friday, June 30th will be paid a dividend of $0.16 per share on Thursday, July 27th. [BREAKING] Small Firm Wins $1 Billion Army Contract for Breakthrough "Living Software" (Ad). You can unsubscribe to any of the As investors saw first-hand during the 2008 financial crisis, mortgage-backed securities can be highly volatile and risky. This story from CNBC highlights the concerns about the triple threat of the Fed raising interest rates, reducing the balance sheet, and cutting the amount of bonds it buys each month, all of which could have negative impacts to ORC. This includes personalizing content and advertising. Orchid Island Capital, Inc. is a specialty finance company that invests on a leveraged basis in Agency RMBS. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. 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. Essentially, Bimini hired away from AVM the main guy who has been responsible for doing all the work for ORC/Bimini, and then fired AVM.

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