Orchid Island Capital(ORC) Seeking Alpha·2024-07-22 20:44Earnings Results - Orchid Island Capital (ORC) announced an unchanged monthly dividend of 8.60, with a reported BV of 0.003, indicating stability in core earnings despite a modest BV loss [11] - The reported earnings per share for Q2 2024 was -0.095, reflecting a 3.16% improvement [8] - The dividend yield stands at 16.90%, with a payout ratio of -1631%, indicating a significant discrepancy between earnings and dividends [9] Market Position and Valuation - ORC is considered modestly overvalued, with a recommendation to remain patient before investing until valuations improve [6] - The risk/performance rating for ORC remains at 4.5, reflecting the current market environment and expectations of "higher-for-longer" rates during 2024 [13][11] - The price to NAV ratio is 0.99, indicating that the stock is trading close to its net asset value [9] Commentary and Recommendations - Management is encouraged to provide an updated core earnings equivalent metric that includes current period hedging income for better comparability with peers [10] - The company experienced a modest quarterly BV loss due to widening agency MBS spreads, which negatively impacted sector BVs [11] - A minor increase in the company's CPR was anticipated as it shifted towards investing in higher coupon MBS, which typically have higher prepayment rates [11]