Investors in cash trouble should check out Orchid Island Capital Inc. (ORC)

Orchid Island Capital Inc. (NYSE: ORC) stock jumped 0.31% on Friday to $3.22 against a previous-day closing price of $3.21. With 1.57 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.76 million shares. During the session, the REIT – Mortgage company that operates in wider Real Estate sector, reached to the highest price of $3.2500 whereas the lowest price it dropped to was $3.1800. The 52-week range on ORC shows that it touched its highest point at $5.17 and its lowest point at $2.44 during that stretch. It currently has a 1-year price target of $3.88. With its current market cap of 566.78 million, ORC has annualized dividend of $0.54 while the current yield stands at 16.77%. Beta for the stock currently stands at 1.32.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ORC was up-trending over the past week, with a rise of 0.63%, but this was up by 9.52% over a month. Three-month performance surged to 8.42% while six-month performance fell -19.30%. The stock lost -34.29% in the past year, while it has lost -28.44% so far this year. A look at the trailing 12-month EPS for ORC yields -1.07 with Next year EPS estimates of 0.57. For the next quarter, that number is 0.15. This implies an EPS growth rate of -21.50% for this year and -5.47% for next year.

Float and Shares Shorts:

At present, 177.00 million ORC shares are outstanding with a float of 176.67 million shares on hand for trading. On Jul 14, 2022, short shares totaled 13.49 million, which was 7.65% higher than short shares on Jun 14, 2022. In addition to Mr. Robert E. Cauley C.F.A., CPA, CFA, CPA as the firm’s Chairman, Pres & CEO, Mr. George Hunter Haas IV serves as its CFO, Chief Investment Officer, Sec. & Director.

Institutional Ownership:

Through their ownership of 21.61% of ORC’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 7.65% of ORC, in contrast to 14.03% held by mutual funds. Shares owned by individuals account for 0.92%. As the largest shareholder in ORC with 6.27% of the stake, BlackRock Fund Advisors holds 11,108,021 shares worth 11,108,021. A second-largest stockholder of ORC, The Vanguard Group, Inc., holds 10,058,625 shares, controlling over 5.68% of the firm’s shares. Geode Capital Management LLC is the third largest shareholder in ORC, holding 2,669,064 shares or 1.51% stake. With a 2.94% stake in ORC, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 5,205,932 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 2.10% of ORC stock, is the second-largest Mutual Fund holder. It holds 3,714,301 shares valued at 10.59 million. iShares Tr. – Mortgage Real Estat holds 1.38% of the stake in ORC, owning 2,446,223 shares worth 6.97 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. It generated -$148.73M net income for the quarter, which came to -$184.12M over the last twelve months.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ORC since 3 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ORC analysts setting a high price target of $3.50 and a low target of $3.50, the average target price over the next 12 months is $3.50. Based on these targets, ORC could surge 8.7% to reach the target high and rise by 8.7% to reach the target low. Reaching the average price target will result in a growth of 8.7% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ORC will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of $0.69 being high and $0.46 being low. For ORC, this leads to a yearly average estimate of $0.60. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Orchid Island Capital Inc. surprised analysts by -$0.21 when it reported $0.20 EPS against a consensus estimate of $0.41. The surprise factor in the prior quarter was -$0.01. Based on analyst estimates, the high estimate for the next quarter is $0.17 and the low estimate is $0.11. The average estimate for the next quarter is thus $0.15.

Summary of Insider Activity:

Insiders traded ORC stock several times over the past three months with 2 Buys and 2 Sells. In these transactions, 11,048 shares were bought while 2,892 shares were sold. The number of buy transactions has increased to 6 while that of sell transactions has risen to 5 over the past year. The total number of shares bought during that period was 158,395 while 54,647 shares were sold.

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