Orchid Island Capital Increases Authorized Shares

Orchid Island Capital, Inc., a real estate investment trust with a market capitalization of $742 million, has amended its charter to significantly increase its number of authorized shares. Today, the company disclosed in a filing with the Securities and Exchange Commission that it has raised the authorized shares from 120 million to 220 million. This adjustment includes an expansion of common stock from 120 million to 200 million shares, and preferred stock remaining at 20 million shares, each with a par value of $0.01. The company, which offers a substantial 16.8% dividend yield according to InvestingPro, has maintained dividend payments for 13 consecutive years.

The change became effective immediately upon the filing of the articles of amendment to the company's charter on Thursday. This move could potentially pave the way for future equity offerings, although the company has not announced any specific plans to issue new shares at this time. InvestingPro analysis indicates the company's stock has shown strong momentum, delivering a 27.2% return over the past year, despite having short-term obligations that exceed liquid assets.

Orchid Island Capital, based in Vero Beach, Florida, operates within the real estate sector, specializing in investment trusts. The company's common stock is traded on the New York Stock Exchange under the ticker symbol (NYSE:ORC), currently trading near its 52-week high of $9.08, with an overall Financial Health score rated as "FAIR" by InvestingPro, which offers comprehensive analysis and 7 additional ProTips for this stock.

The filing also included an exhibit detailing the articles of amendment to the charter. As per standard practice, the company's CEO, Robert E. Cauley, signed off on the SEC filing, affirming the company's compliance with the regulatory requirements.

Investors and market watchers often view an increase in authorized shares as a preparatory step for various corporate actions, including but not limited to, financing corporate expansions, acquisitions, or offering more shares to the public. It's important to note that while this amendment adjusts the company's capacity to issue more shares, it does not necessarily mean that new shares will be issued imminently.

The information for this report is based on the latest SEC filing by Orchid Island Capital, Inc. and is intended to provide shareholders and the investment community with factual updates on the company's corporate structure.

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