Orc stock price gained 0.5% today following dovish comments from Federal Reserve officials, reviving speculation of a rate cut before year-end. In terms of estimate revisions, the trend for the current year also appears quite encouraging for Orchid Island. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 61.54%. Interest rates were generally range-bound, and volatility was low for most of the first quarter, making it an ideal condition for a levered investment in Agency RMBS for ORC. Accordingly, the company generated attractive returns for the period. Given this, Orchid generated a positive total return of 2.6% in the first quarter of 2025, driven by the company’s compelling monthly dividend. Valuation models assume steady income from agency MBS holdings.
