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

Key Points

• Analyst view: Six analysts give MFA a consensus "Hold" (four holds, two buys) with an average 12‑month target price of $10.81.
• Dividend risk: MFA pays $0.36 quarterly (a $1.44 annual dividend) for a 14.3% yield, but its dividend payout ratio is 111.63%, indicating potential sustainability concerns.
• Institutional interest: About 65.28% of the stock is owned by hedge funds and institutions, with recent position increases by firms such as Goldman Sachs, AQR and Norges Bank.

Shares of MFA Financial, Inc. (NYSE:MFA - Get Free Report) have been given a consensus recommendation of "Hold" by the six analysts that are currently covering the company, MarketBeat.com reports. Four research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $10.8125.

MFA has been the subject of several research analyst reports. Weiss Ratings restated a "hold (c-)" rating on shares of MFA Financial in a report on Wednesday, April 15th. Keefe, Bruyette & Woods raised their price objective on shares of MFA Financial from $10.00 to $11.00 and gave the stock a "market perform" rating in a report on Friday, February 20th. Finally, Royal Bank Of Canada raised their price objective on shares of MFA Financial from $10.00 to $11.00 and gave the stock a "sector perform" rating in a report on Thursday, March 5th.

Hedge Funds Weigh In On MFA Financial

Several large investors have recently made changes to their positions in MFA. AQR Capital Management LLC purchased a new position in shares of MFA Financial during the first quarter valued at approximately $259,000. Goldman Sachs Group Inc. lifted its holdings in shares of 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 purchasing an additional 96,365 shares during the last quarter. Rhumbline Advisers lifted its holdings in shares of MFA Financial by 7.6% during the second quarter. Rhumbline Advisers now owns 167,481 shares of the real estate investment trust's stock valued at $1,584,000 after purchasing an additional 11,800 shares during the last quarter. Russell Investments Group Ltd. lifted its holdings in shares of MFA Financial by 5.3% during the second quarter. Russell Investments Group Ltd. now owns 62,090 shares of the real estate investment trust's stock valued at $587,000 after purchasing an additional 3,146 shares during the last quarter. Finally, Norges Bank purchased a new position in shares of MFA Financial during the second quarter valued at approximately $716,000. 65.28% of the stock is currently owned by hedge funds and other institutional investors.

MFA Financial Price Performance

Shares of MFA opened at $10.06 on Wednesday. MFA Financial has a one year low of $8.78 and a one year high of $10.56. The company has a 50-day simple moving average of $9.93 and a two-hundred day simple moving average of $9.63. The firm has a market capitalization of $1.03 billion, a PE ratio of 7.79 and a beta of 1.54.

MFA Financial (NYSE:MFA - Get Free Report) last issued its quarterly earnings data on Wednesday, February 18th. The real estate investment trust reported $0.27 EPS for the quarter, hitting the consensus estimate of $0.27. MFA Financial had a net margin of 23.73% and a return on equity of 6.67%. The business had revenue of $88.72 million during the quarter, compared to analyst estimates of $60.56 million. During the same period last year, the business posted $0.39 earnings per share.

MFA Financial Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Tuesday, March 31st will be issued a $0.36 dividend. The ex-dividend date is Tuesday, March 31st. This represents a $1.44 annualized dividend and a yield of 14.3%. MFA Financial's dividend payout ratio (DPR) 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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