MFA Financial (NYSE:MFA) Reaches New 1-Year Low - Time to Sell?

Key Points

• MFA Financial shares hit a new 52-week low, falling to $6.73 and trading below both their 50-day ($8.55) and 200-day ($9.22) moving averages.
• Analysts have a mixed but generally neutral view: the stock has an average “Hold” rating and an average price target of $10.29, while Weiss Ratings downgraded it to “sell.”
• MFA declared a quarterly dividend of $0.36, implying a 21.3% annualized yield, but its payout ratio is elevated at 144%, which may raise questions about dividend sustainability.

MFA Financial, Inc. (NYSE:MFA - Get Free Report) shares hit a new 52-week low during trading on Monday. The company traded as low as $6.73 and last traded at $6.7050, with a volume of 574,339 shares traded. The stock had previously closed at $6.88.

Analysts Set New Price Targets

Several research firms have recently commented on MFA. Weiss Ratings downgraded MFA Financial from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday. Royal Bank Of Canada reiterated a "sector perform" rating and set a $10.00 price objective on shares of MFA Financial in a research note on Thursday, August 20th. Citigroup restated a "market outperform" rating on shares of MFA Financial in a research note on Tuesday, August 4th. Citizens Jmp lowered their price target on shares of MFA Financial from $11.50 to $11.00 and set a "market outperform" rating on the stock in a report on Tuesday, August 4th. Finally, William Blair set a $11.00 price target on shares of MFA Financial in a report on Tuesday, August 4th. Four 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 an average rating of "Hold" and an average price target of $10.29.

MFA Financial Stock Down 1.8%

The firm's fifty day moving average price is $8.55 and its 200 day moving average price is $9.22. The stock has a market cap of $682.85 million, a PE ratio of 6.76 and a beta of 1.45.

MFA Financial Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Monday, October 5th will be issued a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a yield of 21.3%. The ex-dividend date is Monday, October 5th. MFA Financial's payout ratio is currently 144.00%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Integrated Wealth Concepts LLC bought a new stake in MFA Financial in the second quarter worth $26,000. Optiver Holding B.V. purchased a new stake in MFA Financial during the first quarter valued at $29,000. Public Employees Retirement System of Ohio bought a new position in MFA Financial during the second quarter valued at $32,000. Global Retirement Partners LLC bought a new position in MFA Financial during the second quarter valued at $39,000. Finally, TD Waterhouse Canada Inc. lifted its position in MFA Financial by 109.4% during the second quarter. TD Waterhouse Canada Inc. now owns 4,325 shares of the real estate investment trust's stock valued at $41,000 after purchasing an additional 2,260 shares during the last quarter. Institutional investors own 65.28% of the company's stock.

About MFA Financial

MFA Financial, Inc is a real estate investment trust that invests primarily in residential mortgage assets. The company focuses on generating income from a portfolio of residential mortgage loans, mortgage-backed securities and other mortgage-related investments.

Its investments may include agency and non-agency mortgage-backed securities, residential whole loans, credit-risk transfer securities and mortgage servicing rights. MFA also acquires and manages residential mortgage assets through subsidiaries and strategic investment relationships, with activities centered on the U.S.

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