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Orchid Island Capital, Inc. (NYSE:ORC), a mortgage REIT with a notable 19.43% dividend yield and a market capitalization of $939 million, announced Monday that it has amended its at-the-market (ATM) equity distribution agreement, increasing the total amount of common stock that may be offered and sold under the program by $150 million. According to InvestingPro data, the company has maintained dividend payments for 13 consecutive years, though analysis suggests the stock is currently trading above its Fair Value. The amendment, entered into with Bimini Advisors, LLC and several sales agents including J.P. Morgan Securities LLC, BTIG, LLC, Citizens JMP Securities, LLC, and JonesTrading Institutional Services LLC, raises the aggregate offering price available under the ATM program.
Under the original agreement dated February 24, 2025, Orchid Island Capital was authorized to sell up to $350 million of its common stock through at-the-market offerings. As of Monday, the company reported it had sold 34,517,584 shares for gross proceeds of approximately $266.5 million. The stock currently trades at $7.43, with a price-to-earnings ratio of 104.5x, indicating a premium valuation relative to earnings. For deeper insights into ORC’s valuation metrics and extensive financial analysis, investors can access the comprehensive Pro Research Report available on InvestingPro.
With the amendment, the aggregate amount that may be offered and sold increases to approximately $500 million. After accounting for shares already sold, Orchid Island Capital may now sell up to about $233.5 million in additional shares through the ATM program. InvestingPro analysis reveals that the company’s short-term obligations exceed its liquid assets, which may partly explain the equity raising initiative.
The shares will be issued pursuant to the company’s registration statement on Form S-3. Orchid Island Capital filed a prospectus supplement dated Monday with the Securities and Exchange Commission in connection with the amended offer.
The company also filed legal and tax opinions from Vinson & Elkins L.L.P. regarding the shares and related U.S. federal income tax matters as part of the required exhibits.
This information is based on a statement from the company’s SEC Form 8-K filed Monday.
In other recent news, Orchid Island Capital Inc. reported a surprising second-quarter earnings per share (EPS) loss of -$0.16, significantly missing the forecasted $0.14. This resulted in a negative surprise of 214.29%. Despite the earnings miss, the company’s revenue surged to $23.15 million, far exceeding the anticipated $3.7 million. This revenue beat may have contributed to investor optimism. The stock’s performance was reflected in its closing price, though specific figures are not detailed here. These developments highlight the mixed financial results for Orchid Island Capital. Further analysis from financial firms might provide additional insights into these outcomes.
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