MFA Financial (NYSE:MFA) Reaches New 12-Month Low - Should You Sell?

Key Points

• MFA Financial shares hit a new 52-week low, falling to $6.49 and trading below both their 50-day and 200-day moving averages.
• Analyst sentiment is mixed: the stock has a consensus rating of “Hold” and an average price target of $9.79, although several firms maintain Buy or Market Outperform ratings.
• The company declared a quarterly dividend of $0.36, implying a 22.3% annualized yield; however, its 144% payout ratio may raise questions about dividend sustainability.

MFA Financial, Inc. (NYSE:MFA - Get Free Report)'s share price hit a new 52-week low on Monday. The stock traded as low as $6.49 and last traded at $6.4450, with a volume of 177,790 shares. The stock had previously closed at $6.59.

Analyst Upgrades and Downgrades

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

MFA Financial Stock Down 1.9%

The firm has a market cap of $653.55 million, a price-to-earnings ratio of 6.46 and a beta of 1.45. The stock has a 50 day moving average of $8.30 and a 200 day moving average of $9.12.

MFA Financial Announces Dividend

The company also recently announced 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 annualized dividend and a yield of 22.3%. The ex-dividend date of this dividend is Monday, October 5th. MFA Financial's dividend payout ratio (DPR) is currently 144.00%.

Hedge Funds Weigh In On MFA Financial

Several hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. boosted its position in shares of MFA Financial by 3.0% during the 2nd quarter. BlackRock Inc. now owns 9,459,988 shares of the real estate investment trust's stock worth $91,667,000 after acquiring an additional 271,707 shares in the last quarter. State Street Corp increased its stake in MFA Financial by 6.0% in the second quarter. State Street Corp now owns 2,576,990 shares of the real estate investment trust's stock valued at $25,869,000 after acquiring an additional 145,992 shares during the last quarter. Renaissance Technologies LLC raised its position in MFA Financial by 245.2% during the first quarter. Renaissance Technologies LLC now owns 777,025 shares of the real estate investment trust's stock valued at $7,444,000 after purchasing an additional 551,927 shares in the last quarter. Bank of New York Mellon Corp raised its position in MFA Financial by 0.7% during the second quarter. Bank of New York Mellon Corp now owns 537,991 shares of the real estate investment trust's stock valued at $5,213,000 after purchasing an additional 3,960 shares in the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new position in MFA Financial during the second quarter valued at approximately $3,589,000. 65.28% of the stock is currently owned by institutional investors and hedge funds.

MFA Financial Company Profile

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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