Orchid Island Capital (NYSE:ORC) to Buyback 25,000,000,000,000 Shares

Orchid Island Capital (NYSE:ORC) announced that its Board of Directors has approved a stock buyback program on Monday, June 22nd, RTT News reports. The company plans to repurchase 25,000,000,000,000 shares. This repurchase authorization authorizes the real estate investment trust to repurchase up to 12.5% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Orchid Island Capital Stock Down 1.3%

Shares of ORC traded down $0.09 during mid-day trading on Monday, reaching $6.62. The company had a trading volume of 3,603,370 shares, compared to its average volume of 4,569,846. The company has a debt-to-equity ratio of 0.26, a quick ratio of 509.34 and a current ratio of 509.34. The firm has a 50-day moving average price of $6.86 and a 200 day moving average price of $7.24. Orchid Island Capital has a 52 week low of $6.41 and a 52 week high of $8.40. The company has a market capitalization of $1.33 billion, a price-to-earnings ratio of 8.82 and a beta of 1.55.

Orchid Island Capital (NYSE:ORC) last posted its quarterly earnings results on Thursday, April 23rd. The real estate investment trust reported $0.26 earnings per share for the quarter, hitting the consensus estimate of $0.26. The company had revenue of ($12.56) million during the quarter, compared to analysts’ expectations of $33.03 million.

Orchid Island Capital Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Thursday, July 30th. Stockholders of record on Tuesday, June 30th will be paid a $0.10 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 18.1%. The ex-dividend date of this dividend is Tuesday, June 30th. Orchid Island Capital’s dividend payout ratio is currently 160.00%.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on ORC shares. Wall Street Zen downgraded Orchid Island Capital from a “hold” rating to a “sell” rating in a report on Tuesday, May 5th. Weiss Ratings cut Orchid Island Capital from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, April 6th. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Reduce” and a consensus price target 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.