Orchid Island Capital Inc (ORC)

Shares of Orchid Island Capital (ORC) dropped by 6.16% from $7.96 to $7.47 in the trading on Thursday, October 12, 2023. The reason why ORC is down today is due to significant announcements regarding its financial performance and dividend distribution.

• Company Announces Estimated Third Quarter 2023 Results: Orchid Island Capital, Inc. shared its estimated results for the third quarter ending September 30, 2023. The company reported an estimated book value per share of $8.92. It also projected an estimated GAAP net loss of $1.68 per share for the same quarter, which includes an approximate $1.40 per share of net realized and unrealized losses on RMBS (Residential Mortgage-Backed Securities) and derivative instruments. Notably, these figures are preliminary and await review by the company's independent registered public accounting firm.
• Monthly Dividend Declaration for October 2023: The board of directors of Orchid Island Capital declared a monthly cash dividend of $0.12 per share for the month of October 2023. Shareholders of record as of October 31, 2023, will receive this dividend on November 28, 2023, while the ex-dividend date is set for October 30, 2023. Orchid Island Capital plans to continue its regular monthly cash distributions to common stockholders.
• Total Return on Equity and Future Outlook: For the quarter ending September 30, 2023, the company estimated a total return on equity of (15.8)%. This calculation considers dividends declared and paid during the quarter, combined with changes in book value. The total return amounted to $(1.76) per share, comprising dividends of $0.48 per share and a decrease in book value of $2.24 per share from June 30, 2023.

Shares of Orchid Island Capital (ORC) dropped by 4.70% from $9.37 to $8.93 in the trading on Thursday, September , 2023. The reason why ORC is down today is due to the broader market's reaction to expectations of prolonged high-interest rates in the United States.

• Global Market Decline: The broader market, including ORC, faced a significant decline as Wall Street reacted to the anticipation of prolonged high-interest rates in the United States. The S&P 500 fell by 1.6%, marking its most substantial drop since March. Big Tech stocks also saw losses, with the Nasdaq composite down 1.8%, and the Dow Jones Industrial Average losing 370 points.
• Rising Treasury Yields: A contributing factor to the market decline was the rise in the 10-year Treasury yield, reaching 4.48%, nearing levels not seen since 2007. Higher bond yields can deter investors from paying premium prices for stocks, impacting overall market sentiment.
• Fed Projections and Bank of England's Decision: The Federal Reserve's economic projections indicated that most policymakers expected one more interest rate hike in the current year, with less aggressive rate-cutting expected next year, disappointing investors.
• Powell's Statements: Comments from Federal Reserve Chair Jerome Powell emphasizing the central bank's commitment to addressing inflation and the possibility of another rate hike later in the year also contributed to the market's downturn.

Shares of Orchid Island Capital (ORC) dropped by 5.28% from $10.03 to $9.50 in the trading on Tuesday, May 2, 2023. The reason why ORC is down today is due to market volatility and the release of the company's Q1 financial results.

• Market Turbulence and Economic Worries: The broader market experienced significant turbulence, with the Dow Jones Industrial Average dropping more than 350 points. The market's aversion to risk occurred as the Federal Reserve was expected to continue raising interest rates to combat high inflation. The central bank's previous rate hikes had contributed to the banking sector crisis earlier in the year. Investors turned to safer assets like government bonds amid concerns about the Federal Reserve's upcoming interest rate decision and its potential impact on the economy.
• Orchid Island Capital's Q1 2023 Performance: ORC reported a Q1 2023 net income of $3.5 million, translating to $0.09 per common share. This figure included net interest expense of $4.2 million and total expenses of $5.0 million. Orchid also realized net gains of $12.7 million on RMBS and derivative instruments, contributing to its overall performance. ORC maintained a liquidity position of $197.0 millio in cash, cash equivalents, and unpledged RMBS, representing 44% of stockholders' equity as of March 31, 2023. The company also had borrowing capacity exceeding its outstanding repurchase agreement balances of $3,769.4 million, distributed among 20 active lenders.