MFA Financial, Inc. (NYSE:MFA) Sees Large Decline in Short Interest

Key Points

• Short interest fell 20.1% in April to 2,675,062 shares (about 2.7% of shares sold short), leaving a short-interest ratio of 2.2 days based on average daily volume.
• The company announced a quarterly dividend of $0.36 ($1.44 annualized) implying a 14.0% yield, though the payout ratio is elevated at 111.63%.
• Several hedge funds increased or initiated positions in the quarter, and institutional investors now own 65.28% of MFA Financial's stock.

MFA Financial, Inc. (NYSE:MFA - Get Free Report) saw a large drop in short interest during the month of April. As of April 15th, there was short interest totaling 2,675,062 shares, a drop of 20.1% from the March 31st total of 3,348,824 shares. Based on an average daily volume of 1,212,313 shares, the short-interest ratio is presently 2.2 days. Currently, 2.7% of the shares of the company are sold short.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Value Investment Professionals LLC purchased a new position in MFA Financial during the 1st quarter valued at about $109,000. QRG Capital Management Inc. purchased a new position in shares of MFA Financial during the 1st quarter valued at $433,000. Simplify Asset Management Inc. grew its position in shares of MFA Financial by 3.2% during the 1st quarter. Simplify Asset Management Inc. now owns 209,000 shares of the real estate investment trust's stock valued at $2,002,000 after purchasing an additional 6,500 shares in the last quarter. Inspire Investing LLC grew its position in shares of MFA Financial by 7.2% during the 1st quarter. Inspire Investing LLC now owns 53,907 shares of the real estate investment trust's stock valued at $516,000 after purchasing an additional 3,603 shares in the last quarter. Finally, Pictet Asset Management Holding SA grew its position in shares of MFA Financial by 35.2% during the 1st quarter. Pictet Asset Management Holding SA now owns 20,170 shares of the real estate investment trust's stock valued at $193,000 after purchasing an additional 5,247 shares in the last quarter. Hedge funds and other institutional investors own 65.28% of the company's stock.

MFA Financial Stock Performance

MFA Financial stock traded up $0.10 during mid-day trading on Thursday, reaching $10.27. The company's stock had a trading volume of 1,454,878 shares, compared to its average volume of 1,212,026. MFA Financial has a 12-month low of $8.78 and a 12-month high of $10.56. The company has a market capitalization of $1.04 billion, a P/E ratio of 7.96 and a beta of 1.54. The firm's fifty day moving average price is $9.98 and its two-hundred day moving average price is $9.68.

MFA Financial (NYSE:MFA - Get Free Report) last released its quarterly earnings data on Wednesday, February 18th. The real estate investment trust reported $0.27 earnings per share for the quarter, meeting analysts' consensus estimates 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 in the previous year, the business earned $0.39 EPS.

MFA Financial Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders 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 14.0%. The ex-dividend date of this dividend is Tuesday, March 31st. MFA Financial's payout ratio is presently 111.63%.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on MFA. Keefe, Bruyette & Woods raised their price target on shares of MFA Financial from $10.00 to $11.00 and gave the stock a "market perform" rating in a research note on Friday, February 20th. Weiss Ratings reissued a "hold (c-)" rating on shares of MFA Financial in a report on Wednesday, April 15th. Finally, Royal Bank Of Canada lifted their price objective on MFA Financial from $10.00 to $11.00 and gave the stock a "sector perform" rating in a report on Thursday, March 5th. Two equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $10.81.

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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