MFA Financial, Inc. (NYSE:MFA) Given Average Rating of "Hold" by Analysts

Key Points

• Analysts give MFA Financial an average rating of Hold (four Hold, two Buy) with a one‑year consensus target of $10.81, and several brokers (Keefe, Bruyette & Woods and RBC) recently raised targets to $11.00.
• Institutional investors own about 65.28% of the stock, with Goldman Sachs boosting its stake to 691,408 shares (~$7.09M) and firms like AQR and Entropy opening new positions.
• MFA declared a quarterly dividend of $0.36 ($1.44 annual), implying a 15.2% yield (ex‑dividend Mar 31, payable Apr 30) despite a payout ratio of 111.63%; the shares trade near $9.46 with a P/E of 7.33 and recent quarterly EPS of $0.27 that met estimates.

Shares of MFA Financial, Inc. (NYSE:MFA - Get Free Report) have earned an average rating of "Hold" from the six analysts that are currently covering the firm, MarketBeat Ratings reports. Four research analysts have rated the stock with a hold recommendation and two have given a buy recommendation to the company. The average 1 year target price among analysts that have covered the stock in the last year is $10.8125.

Several brokerages have commented on MFA. Keefe, Bruyette & Woods raised their target price on MFA Financial from $10.00 to $11.00 and gave the stock a "market perform" rating in a research note on Friday, February 20th. Royal Bank Of Canada upped their price target on MFA Financial from $10.00 to $11.00 and gave the company a "sector perform" rating in a research report on Thursday, March 5th. Finally, Weiss Ratings raised shares of MFA Financial from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, January 16th.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. AQR Capital Management LLC bought a new position in shares of MFA Financial in the first quarter worth $259,000. Goldman Sachs Group Inc. boosted its stake in MFA Financial by 16.2% during the first quarter. Goldman Sachs Group Inc. now owns 691,408 shares of the real estate investment trust's stock valued at $7,094,000 after buying an additional 96,365 shares during the period. Geode Capital Management LLC grew its position in MFA Financial by 2.3% during the second quarter. Geode Capital Management LLC now owns 2,489,686 shares of the real estate investment trust's stock worth $23,555,000 after buying an additional 54,944 shares in the last quarter. Police & Firemen s Retirement System of New Jersey grew its position in MFA Financial by 6.7% during the second quarter. Police & Firemen s Retirement System of New Jersey now owns 22,150 shares of the real estate investment trust's stock worth $210,000 after buying an additional 1,392 shares in the last quarter. Finally, Entropy Technologies LP bought a new position in MFA Financial in the 2nd quarter worth about $147,000. 65.28% of the stock is owned by institutional investors.

MFA Financial Price Performance

Shares of MFA stock opened at $9.46 on Friday. The stock has a market capitalization of $965.26 million, a price-to-earnings ratio of 7.33 and a beta of 1.57. The company's fifty day simple moving average is $9.92 and its two-hundred day simple moving average is $9.61. MFA Financial has a 1 year low of $7.85 and a 1 year high of $10.76.

MFA Financial (NYSE:MFA - Get Free Report) last posted its quarterly earnings results on Wednesday, February 18th. The real estate investment trust reported $0.27 EPS for the quarter, hitting analysts' consensus estimates of $0.27. MFA Financial had a return on equity of 6.67% and a net margin of 23.73%.The firm had revenue of $88.72 million during the quarter, compared to analyst estimates of $60.56 million. During the same period last year, the company earned $0.39 earnings per share. Equities research analysts anticipate that MFA Financial will post 1.5 EPS for the current year.

MFA Financial Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Tuesday, March 31st will be issued a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a yield of 15.2%. The ex-dividend date of this dividend is Tuesday, March 31st. MFA Financial's dividend payout ratio is 111.63%.

About MFA Financial

MFA Financial, Inc, headquartered in New York City, is a real estate investment trust that specializes in investing in residential mortgage loans and mortgage-related securities. The company's primary objective is to generate attractive risk-adjusted returns through net interest income and capital appreciation. As a mortgage REIT, MFA Financial focuses on constructing a diversified portfolio of agency and non-agency residential mortgage assets, leveraging its expertise in acquiring, financing and servicing mortgage products.

MFA Financial's investment portfolio encompasses a wide range of mortgage instruments, including adjustable-rate and fixed-rate mortgage loans, interest-only securities, and agency mortgage-backed securities guaranteed by government-sponsored entities.

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