MFA Financial (NYSE:MFA) Hits New 12-Month Low Following Weak Earnings

Key Points

• MFA Financial hit a new 52-week low, falling to $6.38 after reporting quarterly EPS of $0.26, below the $0.29 consensus estimate.
• The company reported quarterly revenue of negative $84.47 million, versus analysts’ estimate of $59.52 million.
• MFA paid a $0.36 quarterly dividend, equivalent to a 22.4% yield and a 144% payout ratio; analysts’ consensus rating was Hold, with a $9.79 average price target.

Shares of MFA Financial, Inc. (NYSE:MFA - Get Free Report) reached a new 52-week low during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $6.38 and last traded at $6.4050, with a volume of 2,251,715 shares changing hands. The stock had previously closed at $6.61.

The real estate investment trust reported $0.26 EPS for the quarter, missing analysts' consensus estimates of $0.29 by ($0.03). MFA Financial had a return on equity of 7.58% and a net margin of 19.38%. The business had revenue of ($84.47) million for the quarter, compared to the consensus estimate of $59.52 million.

MFA Financial Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, October 30th. Stockholders of record on Monday, October 5th were paid a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 22.4%. The ex-dividend date of this dividend was Monday, October 5th. MFA Financial's dividend payout ratio is 144.00%.

Analyst Ratings Changes

A number of brokerages recently weighed in on MFA. William Blair set a $11.00 price target on shares of MFA Financial in a research report on Tuesday, August 4th. Citigroup reaffirmed a "market outperform" rating on shares of MFA Financial in a research report on Thursday, October 15th. BTIG Research reissued a "buy" rating and issued a $9.50 price objective (down from $10.50) on shares of MFA Financial in a research report on Tuesday, October 6th. Citizens Jmp lowered their price target on shares of MFA Financial from $11.00 to $8.00 and set a "market outperform" rating on the stock in a research note on Thursday, October 15th. Finally, Royal Bank Of Canada reissued a "sector perform" rating and set a $10.00 price target on shares of MFA Financial in a research report on Thursday, August 20th. Four investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $9.79.

Institutional Trading of MFA Financial

Hedge funds have recently added to or reduced their stakes in the company. Commonwealth Equity Services LLC acquired a new stake in MFA Financial during the third quarter worth about $83,000. VIRGINIA RETIREMENT SYSTEMS ET Al raised its position in shares of MFA Financial by 6.8% in the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 125,117 shares of the real estate investment trust's stock valued at $982,000 after buying an additional 8,000 shares in the last quarter. Kingswood Wealth Advisors LLC raised its position in shares of MFA Financial by 11.1% in the 3rd quarter. Kingswood Wealth Advisors LLC now owns 30,000 shares of the real estate investment trust's stock valued at $236,000 after buying an additional 3,000 shares in the last quarter. Wedbush Securities Inc. raised its position in shares of MFA Financial by 12.8% in the 3rd quarter. Wedbush Securities Inc. now owns 16,067 shares of the real estate investment trust's stock valued at $126,000 after buying an additional 1,823 shares in the last quarter. Finally, Inspire Investing LLC lifted its holdings in shares of MFA Financial by 15.5% during the 3rd quarter. Inspire Investing LLC now owns 80,469 shares of the real estate investment trust's stock worth $632,000 after acquiring an additional 10,799 shares during the period. 65.28% of the stock is owned by institutional investors and hedge funds.

MFA Financial Trading Down 2.8%

The company's 50-day moving average is $7.68 and its 200-day moving average is $9.15. The firm has a market cap of $649.49 million, a price-to-earnings ratio of 6.41 and a beta of 1.51.

About MFA Financial

MFA Financial, Inc NYSE: MFA is a real estate investment trust and specialty finance company focused on residential mortgage assets. The company invests in a range of mortgage-related investments, including agency and non-agency residential mortgage-backed securities, residential whole loans, mortgage servicing rights and other assets associated with the U.S. housing finance market.

MFA Financial generally seeks to generate income from its investment portfolio through interest payments, servicing-related income and other returns associated with residential mortgage credit.

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