Compass Point Initiates Coverage on Orchid Island Capital (ORC) at Neutral

Core Insights - Orchid Island Capital, Inc. (NYSE:ORC) is recognized as one of the 13 highest paying monthly dividend stocks to buy [1] - Compass Point initiated coverage on Orchid Island Capital with a Neutral rating and a price target of $7.50 [2] Financial Performance - In Q3 2025, Orchid Island Capital reported a total return of 6.7% on an unannualized basis, benefiting from stable market conditions for levered Agency RMBS investors [3][4] - The company generated a net income of $72.1 million for the quarter, a significant increase from $17.3 million in the same period last year [6] - Book value increased by $0.12 per share, reflecting net income of $0.53 per share, offset by dividend payments of $0.36 per share [6] Investment Strategy - Despite an increase in prepayments due to declining rates, Orchid Island Capital successfully identified attractive investment opportunities through careful security selection and risk management [5] - The company maintained leverage at approximately 7.4x, with the potential to increase leverage if market returns improve [5]