MFA Financial (NYSE:MFA) Sets New 52-Week Low - Here's Why

Key Points

• MFA Financial shares hit a new 52-week low, trading as low as $7.58 and last changing hands at $7.31, down 4.6% from the prior close.
• Analyst sentiment is mixed: the stock carries an average “Hold” rating and a $10.46 target price, despite BTIG upgrading it to “Buy” and Weiss Ratings downgrading it to “Sell.”
• MFA declared a quarterly dividend of $0.36 per share, equating to a 19.7% annualized yield, though its 144% payout ratio exceeds reported earnings.

MFA Financial, Inc. (NYSE:MFA - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Monday. The stock traded as low as $7.58 and last traded at $7.3060, with a volume of 3046859 shares trading hands. The stock had previously closed at $7.65.

Analyst Ratings Changes

MFA has been the subject of several recent analyst reports. BTIG Research raised shares of MFA Financial from a "neutral" rating to a "buy" rating and set a $10.50 price objective for the company in a research note on Wednesday, June 17th. William Blair set a $11.00 price objective on MFA Financial in a report on Tuesday, August 4th. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $10.00 price objective on shares of MFA Financial in a research report on Thursday, August 20th. Weiss Ratings lowered MFA Financial from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, September 11th. Finally, Citizens Jmp decreased their target price on MFA Financial from $11.50 to $11.00 and set a "market outperform" rating for the company in a research report on Tuesday, August 4th. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, MFA Financial presently has an average rating of "Hold" and an average target price of $10.46.

MFA Financial Trading Down 4.6%

The stock has a market capitalization of $737.55 million, a price-to-earnings ratio of 7.30 and a beta of 1.45. The firm has a 50-day moving average of $8.75 and a 200-day moving average of $9.32.

MFA Financial Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Monday, October 5th will be issued a dividend of $0.36 per share. The ex-dividend date of this dividend is Monday, October 5th. This represents a $1.44 dividend on an annualized basis and a yield of 19.7%. MFA Financial's dividend payout ratio is 144.00%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Integrated Wealth Concepts LLC acquired a new position in shares of MFA Financial in the second quarter worth about $26,000. Optiver Holding B.V. acquired a new stake in shares of MFA Financial during the 1st quarter valued at about $29,000. Public Employees Retirement System of Ohio purchased a new position in shares of MFA Financial in the 2nd quarter valued at about $32,000. Global Retirement Partners LLC purchased a new position in shares of MFA Financial in the 2nd quarter valued at about $39,000. Finally, TD Waterhouse Canada Inc. raised its holdings in MFA Financial by 109.4% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 4,325 shares of the real estate investment trust's stock worth $41,000 after purchasing an additional 2,260 shares during the period. Hedge funds and other institutional investors own 65.28% of the company's stock.

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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