MFA Financial (NYSE:MFA) Sets New 12-Month Low - Here's Why

Key Points

• MFA Financial hit a new 52-week low, trading as low as $5.88, down from its prior close of $5.97.
• The REIT reported quarterly EPS of $0.26, below analysts’ $0.29 estimate. Analysts’ average rating is “Hold,” with a $9.79 average price target; several firms recently cut their targets.
• MFA paid a quarterly dividend of $0.36, equivalent to a 24.5% annualized yield at the reported share price, although its payout ratio was negative.

MFA Financial, Inc. (NYSE:MFA - Get Free Report) reached a new 52-week low during trading on Wednesday. The stock traded as low as $5.88 and last traded at $5.9350, with a volume of 255,071 shares trading hands. The stock had previously closed at $5.97.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on MFA shares. Citizens Jmp dropped their target price on MFA Financial from $11.00 to $8.00 and set a "market outperform" rating for the company in a research report on Thursday, October 15th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $10.00 price target on shares of MFA Financial in a research note on Thursday, August 20th. William Blair set a $11.00 price target on MFA Financial in a report on Tuesday, August 4th. BTIG Research reiterated 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. Finally, Weiss Ratings lowered MFA Financial from a "sell (d+)" rating to a "sell (d)" rating in a research report on Friday, October 9th. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $9.79.

MFA Financial Stock Down 1.6%

The firm has a market capitalization of $593.67 million, a price-to-earnings ratio of -10.86 and a beta of 1.51. The company's fifty day moving average is $7.47 and its two-hundred day moving average is $9.07.

MFA Financial (NYSE:MFA - Get Free Report) last released its earnings results on Wednesday, November 4th. The real estate investment trust reported $0.26 EPS for the quarter, missing analysts' consensus estimates of $0.29 by ($0.03). The business had revenue of ($84.47) million for the quarter, compared to analyst estimates of $59.52 million. MFA Financial had a positive return on equity of 9.82% and a negative net margin of 1.48%.

MFA Financial Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Monday, October 5th were paid a $0.36 dividend. The ex-dividend date of this dividend was Monday, October 5th. This represents a $1.44 annualized dividend and a yield of 24.5%. MFA Financial's dividend payout ratio is presently -266.67%.

Hedge Funds Weigh In On MFA Financial

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. grew 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 buying an additional 271,707 shares during the period. State Street Corp raised its holdings 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 worth $25,869,000 after purchasing an additional 145,992 shares during the period. Renaissance Technologies LLC raised its holdings in MFA Financial by 245.2% in the first quarter. Renaissance Technologies LLC now owns 777,025 shares of the real estate investment trust's stock worth $7,444,000 after purchasing an additional 551,927 shares during the period. Bank of New York Mellon Corp raised its holdings in MFA Financial by 0.7% in the second quarter. Bank of New York Mellon Corp now owns 537,991 shares of the real estate investment trust's stock worth $5,213,000 after purchasing an additional 3,960 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of MFA Financial during the second quarter worth $3,589,000. Institutional investors own 65.28% of the company's stock.

About MFA Financial

MFA Financial, Inc. is a real estate investment trust focused on residential mortgage assets. The company invests in mortgage-backed securities and residential mortgage loans, including loans that it acquires or originates. Its portfolio includes agency and non-agency mortgage-backed securities, as well as whole loans secured by residential properties. Through its subsidiary Lima One Capital, MFA also provides financing to real estate investors, including loans for property renovation and rental housing.

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