Analysts Recommend Purchase for MFA Financial, Inc. with Target Price of $14.00

On January 5th, 2025, it was reported that shares of MFA Financial, Inc. (NYSE:MFA) have received a favorable average recommendation of "Buy" from five brokerage firms that are currently analyzing the stock. The consensus indicates a bullish stance, with each of the five research analysts advocating for a buy.

The analysts have collectively set an average 12-month target price at $14.00, reflecting their confidence in the company's growth and financial performance.

MFA Financial has recently been highlighted in various analyst reports. Notably, Wedbush maintained an “outperform” rating, assigning a target price of $15.00 during a research note issued on November 7th. Additionally, Janney Montgomery Scott initiated coverage on MFA Financial, providing it with a “buy” rating and aligning with the $14.00 target price.

However, not all assessments were positive; StockNews.com lowered its rating for MFA Financial from “buy” to “hold” in a report on the same date. Meanwhile, Raymond James increased its price target from $13.00 to $14.50, issuing an “outperform” rating on September 19th.

MFA Financial Stock Movement

As for the stock's recent performance, shares of MFA Financial opened at $10.34 last Thursday. The stock has experienced a 52-week range, with a low of $9.88 and a high of $13.45. Currently, the market capitalization stands at $1.06 billion, with a price-to-earnings (P/E) ratio of 6.50 and a beta of 2.11. The company’s 50-day moving average is recorded at $11.06, while the 200-day moving average is at $11.55.

Dividend Announcement

In recent updates, MFA Financial also announced a quarterly dividend. This dividend will be disbursed on January 31st, with shareholders recorded as of December 31st set to receive a $0.35 dividend payment. With an annualized total of $1.40, this indicates a dividend yield of 13.54%. The company's dividend payout ratio is noted to be 88.05%.

Changes in Institutional Ownership

Recent modifications in institutional holdings show several hedge funds adjusting their investments in MFA Financial. For instance, Wellington Management Group LLP increased its stake by 1.0% during the third quarter, now owning approximately 11 million shares valued at around $140 million after acquiring additional shares. Similarly, Vaughan Nelson Investment Management L.P. raised its holdings by 35.4%, now possessing about 4.58 million shares valued at $58 million.

State Street Corp, Geode Capital Management LLC, and Charles Schwab Investment Management Inc. also expanded their positions in MFA Financial, owning about 2.58 million, 2.41 million, and 1.84 million shares respectively. Presently, 65.28% of the stock is owned by institutional investors, showcasing significant institutional interest in the company.

Understanding MFA Financial

MFA Financial, Inc. operates as a real estate investment trust (REIT) in the United States. The company primarily invests in residential mortgage securities, which include non-agency mortgage-backed securities, agency mortgage-backed securities (MBS), and credit risk transfer securities, as well as in various types of residential loans.

MFA, Financial, Stock