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

MFA Financial, Inc. (NYSE:MFA) hit a new 52-week low on Monday . The stock traded as low as $8.84 and last traded at $9.02, with a volume of 270130 shares changing hands. The stock had previously closed at $9.58.

Wall Street Analyst Weigh In

A number of research firms have commented on MFA. StockNews.com lowered shares of MFA Financial from a “buy” rating to a “hold” rating in a report on Friday, March 28th. Keefe, Bruyette & Woods decreased their price objective on shares of MFA Financial from $13.50 to $12.50 and set an “outperform” rating for the company in a report on Thursday, February 20th. Janney Montgomery Scott assumed coverage on MFA Financial in a research note on Thursday, January 2nd. They set a “buy” rating and a $14.00 price objective on the stock. Finally, JMP Securities decreased their target price on MFA Financial from $13.50 to $12.50 and set a “market outperform” rating for the company in a research note on Thursday, January 23rd. One investment analyst has rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat.com, MFA Financial currently has a consensus rating of “Moderate Buy” and a consensus target price of $13.70.

MFA Financial Price Performance

The business’s 50-day moving average is $10.58 and its two-hundred day moving average is $11.05. The firm has a market cap of $929.07 million, a P/E ratio of 11.22 and a beta of 1.61.

MFA Financial (NYSE:MFA) last released its quarterly earnings data on Wednesday, February 19th. The real estate investment trust reported $0.38 earnings per share for the quarter, missing the consensus estimate of $0.40 by ($0.02). MFA Financial had a return on equity of 9.61% and a net margin of 16.47%. The firm had revenue of $50.80 million for the quarter, compared to analyst estimates of $58.06 million. Equities research analysts predict that MFA Financial, Inc. will post 1.5 EPS for the current year.

MFA Financial Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 30th. Shareholders of record on Monday, March 31st will be given a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 15.89%. The ex-dividend date is Monday, March 31st. This is a positive change from MFA Financial’s previous quarterly dividend of $0.35. MFA Financial’s dividend payout ratio is presently 177.78%.

Hedge Funds Weigh In On MFA Financial

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. National Bank of Canada FI bought a new position in shares of MFA Financial in the fourth quarter worth $27,000. Sterling Capital Management LLC increased its holdings in MFA Financial by 823.4% in the 4th quarter. Sterling Capital Management LLC now owns 3,278 shares of the real estate investment trust’s stock valued at $33,000 after buying an additional 2,923 shares during the period. Quarry LP acquired a new position in shares of MFA Financial in the 4th quarter valued at approximately $36,000. Parkside Financial Bank & Trust bought a new stake in shares of MFA Financial during the 4th quarter worth approximately $46,000. Finally, Strategic Financial Concepts LLC acquired a new stake in shares of MFA Financial during the 4th quarter worth approximately $104,000. 65.28% of the stock is owned by institutional investors and hedge funds.

About MFA Financial

MFA Financial, Inc, together with its subsidiaries, operates as a real estate investment trust in the United States. It invests in residential mortgage securities, including non-agency mortgage-backed securities, agency MBS, and credit risk transfer securities; residential whole loans, including purchased performing loans, purchased credit deteriorated, and non-performing loans; and mortgage servicing rights related assets.