Orchid Island Capital Inc. (ORC) stock Plunges Further After Hours. Here’s why?

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On January 13, Orchid Island Capital Inc. (ORC) shared some new developments. These include Q4 financial estimates, monthly dividends, and RMBS portfolio characteristics. Following the announcement, the stock plunged further in the after-hours session.

During regular trading, ORC stock decreased by a small 0.87% as it closed the session at $4.58. The stock fell further after hours to reach $4.30 at 759 thousand shares. Consequently, the stock lost a further 6.11% in the after-hours on Thursday.

The specialty finance company, Orchid Island Capital Inc. has a market capitalization of $817.71 million. Currently, the company has 176.99 million shares outstanding in the market.

ORC’s Estimated Q4 Results

According to the estimates, the company’s preliminary fourth-quarter 2021 financial results are as follows:

In the fourth quarter, ORC generated an estimated net loss of $0.27 per share, including net realized and unrealized net losses of $0.49 per share.

Moreover, the return on equity is estimated to be (4.9)% in the fourth quarter of 2021. As of September 30, 2021, the total return was $(0.235) per share. This included $0.195 dividends per share and a $0.43 decrease in book value per share.

On December 31, 2021, the estimated book value was $4.34 per share. Further, the total stockholder’s equity amounted to $768.1 million approx. with 176,993,049 common stock shares.

January 2022 Dividend

For the month of January 2022, the company’s board declared a monthly cash dividend of $0.055 per share. Furthermore, the dividend will be payable to the record stockholder on January 31, 2022, on February 24. Consequently, the ex-dividend date for the declared dividend is January 28, 2022.

In addition, the next monthly dividend is expected to be announced on February 16, 2022.

ORC’s RMBS Portfolio

The company also shared the preliminary characteristics of its RMBS portfolio as of December 31, 2021. These characteristic figures shared included details of RMBS Valuation Characteristics; RMBS Assets by Agency; Investment Company Act of 1940 Whole Pool Test Results; Repurchase Agreement Exposure by Counterparty; and RMBS Risk Measures.

Other Recent Developments

On November 17, the company along with Bimini Capital Inc. announced a Third Amendment to the Management Agreement. According to this, ORC and its external manager Bimini Advisors, LLC (a wholly-owned subsidiary of Bimini) entered into the amendment to the agreement between them date February 20, 2013. The Third Amendment was effective as of November 16, 2021.

As per the Amendment, ORC will terminate its agreements with AVM, L.P. and the performance of repurchase agreement trading, clearing and administrative service will become the Manager’s responsibility.

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