MFA stock: buy or sell?
March 27th, 2020
MFA Financial, Inc., through its subsidiaries, operates as a real estate investment trust (REIT) in the United States. The company invests in residential mortgage assets, including non-agency mortgage-backed securities (MBS), agency MBS, residential whole loans, credit risk transfer securities, and mortgage servicing rights related assets.
Should I buy MFA stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
Currently, MFA Financial stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is MFA Financial stock a buy?
Financial institutions and banks publish stock ratings everyday.Unfortunately, we couldn't detect any rating for MFA stock for the last month.
MFA stock analysis
MFA Financial ended yesterday at $1.86 and climbed a super good 9.41%.
MFA Financial shares climbed 9.41% to $1.86 yesterday. Since price and SMA200d lines crossed down on Mar 9th, MFA fell $-5.54 per share (-74.86%). MFA marked a lower low and a lower high in the short term, defining a downward trend. Climbing above $4.51 would break this short term down trend and open possibilities for reversing this situation. On February/20, MFA hit a new all time high, pushing higher than on January tops. Check different trading setups that use ATHs as triggers.
Shares of MFA Financial closed this week at $1.86 and collapsed a frightening -48.33%. This was the third red week in a row, sliding in full a -76.63%.
Once MFA Financial stock failed to resist above the support, it inevitably slid deeper. Not so far away is the last price record MFA Financial marked by mid February, but since then it dropped a 77.01%. Since price and 40-weeks moving average lines crossed down early March, MFA fell $-5.54 per share (-74.86%). Trading stocks that are under the 40-weeks (that is, 200-days) moving average mark is not recommended by many experts, as it indicates that the stock has not enough institutional support.
MFA stock price history
MFA stock went public on April 13th, 1998 with a price of $0.781. Since then, MFA stock surged a 138.50%, with an average of 6.60% per year. If you had invested right after MFA's IPO a $1,000 in MFA stock in 1998, it would worth $1,385.00 today.
1: Adjusted price after possible price splits or reverse-splits.
MFA stock historical price chart
MFA stock reached all-time highs on February 20th with a price of $8.09.
MFA stock price targetPredicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we have not detected any price forecast for MFA Financial stock by any trusted analyst.
Financials and fundamental analysis
Earnings date and Earnings per ShareMFA Financial let down analysts when it posted an Earnings per Share (EPS) of $0.13 when the analysts' forecast was $0.17.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, MFA Financial annual turnover slipped an awful -6.49% to $347.88 million dollars from $372.03 marked in 2017. However, its earnings margin (compared to sales) remained constant to 86.76%, that is $301.80 million.
|2013||$509 M||-||$298 M58.5%||-|
|2014||$359 M||-29.51%||$314 M87.4%||5.32%|
|2015||$355 M||-0.98%||$313 M88.2%||-0.09%|
|2016||$358 M||0.85%||$313 M87.3%||-0.18%|
|2017||$372 M||3.84%||$322 M86.7%||3.11%|
|2018||$348 M||-6.49%||$302 M86.8%||-6.39%|
Quarterly financial resultsMFA Financial reported $72.73 million in sales for 2018-Q4, a -25.90% less compared to previous quarter. Reported quarter earnings marked $60.88 million with a profit margin of 83.70%. Profit margin eased a -5.07% compared to previous quarter when profit margin was 88.77%. When comparing revenues to same quarter last year, MFA Financial sales marked a frightening decrease and plummed a -38.04%.
|2017-Q1||$142 M||-||$78 M54.6%||-|
|2017-Q2||$143 M||0.38%||$79 M55.6%||2.38%|
|2017-Q3||$85 M||-40.52%||$64 M75.1%||-19.72%|
|2017-Q4||$117 M||38.18%||$101 M85.7%||57.66%|
|2018-Q1||$94 M||-19.95%||$83 M88.7%||-17.10%|
|2018-Q2||$83 M||-11.66%||$70 M84.8%||-15.59%|
|2018-Q3||$98 M||18.24%||$87 M88.8%||23.78%|
|2018-Q4||$73 M||-25.90%||$61 M83.7%||-30.13%|
MFA Financial ownershipWhen you are planning to buy a company, it's always worth to check its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For MFA Financial, 0.58% of all outstanding shares are owned by its staff.
In case of MFA Financial stock, 79.73% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for MFA stock account 0.00%, no big difference from last month.
For a better understanding, the next table shows ownership data compared to other related stocks:
|Market cap||$842.8 M|
|Total shares||453.1 M|
|Float shares||449.4 M|
|- Institutional holdings (%)||79.7%|
|- Insider holdings (%)||0.6%|
|Shares in short selling||0.0%|
|Friday, March 27th, 2020|
|Day range||$1.55 - $2.26|
|Average true range||$1.14|
|50d mov avg||$6.65|
|100d mov avg||$7.11|
|200d mov avg||$7.05|
MFA Financial performanceTo better understand MFA Financial performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare MFA Financial performance to :