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Orchid Island Capital, Inc. (NYSE:ORC), currently trading near its 52-week high of $9.08 and boasting a market capitalization of $755 million, has entered into an agreement with multiple sales agents to potentially sell up to $350 million of its common stock, the company disclosed in a filing with the Securities and Exchange Commission on Monday. The REIT has demonstrated strong momentum, delivering a 24% return over the past year. According to InvestingPro analysis, the stock’s RSI suggests it’s in overbought territory.
The Vero Beach, Florida-based real estate investment trust, which specializes in mortgage-backed securities and maintains an impressive 16.14% dividend yield, has engaged J.P. Morgan Securities LLC, BTIG, LLC, Citizens JMP Securities, LLC, and JonesTrading Institutional Services LLC as sales agents for the at-the-market offering. The agreement allows for the sale of shares directly on the New York Stock Exchange, through market makers, or in privately negotiated transactions, including block trades. For deeper insights into ORC’s dividend sustainability and comprehensive financial analysis, consider exploring the detailed Pro Research Report available on InvestingPro.
Sales agents will receive up to 2% of the gross proceeds from the sales they facilitate. However, Orchid Island has clarified that there is no obligation to sell any shares and may suspend offers at any time.
The shares will be offered under the company’s existing shelf registration statement, with a prospectus supplement filed on the same day as the report. The filing also includes an opinion from legal counsel Vinson & Elkins L.L.P. regarding the legality of the shares being offered.
Orchid Island Capital’s move to establish an equity distribution agreement is a common financial strategy for publicly traded companies seeking flexibility in financing their operations or growth initiatives. The company cautions that this report contains forward-looking statements and that actual results could differ from expectations.
The announcement is purely informational, and the company advises that it should not be considered an offer to sell or a solicitation of an offer to buy securities. The sales agents have previously provided various services to Orchid Island Capital and may do so again in the future, potentially leading to customary fees and commissions.
This news is based on the company’s SEC filing and does not constitute financial advice or a recommendation to buy or sell securities. InvestingPro’s comprehensive analysis shows the company maintains a FAIR financial health score, with additional metrics and insights available to subscribers, including 12 key ProTips that could help inform investment decisions.
In other recent news, Orchid Island Capital Inc. reported its fourth-quarter 2024 earnings, surpassing expectations with earnings per share of $0.07, compared to a forecasted loss of $0.02 per share. The company also reported revenue of $8.1 million, significantly exceeding the expected $1.83 million. In another development, Orchid Island Capital declared a monthly dividend of $0.12 per share for February 2025, payable on March 28, 2025, to shareholders of record as of February 28, 2025. Additionally, the company has amended its charter to increase its number of authorized shares from 120 million to 220 million, which includes an expansion of common stock from 120 million to 200 million shares. This change, effective immediately, could allow for future equity offerings, although no specific plans have been announced. As of February 12, 2025, Orchid Island Capital had 93,293,628 shares of common stock outstanding, reflecting an increase from previous counts. These updates provide a factual overview of Orchid Island Capital’s recent corporate activities and financial performance.
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