MFA stock: buy or sell?

MFA stock price: $7.58 -2.19% At close on February 25th, 2020

Updated on:
February 25th, 2020

4

MFA Financial dropped -2.19% to $7.58 after marking all time highs on Thursday. With Tuesday it's been 3 red days in a row.

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?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Having a trading plan helps to make decisions easier, quicker and with less hesitations. 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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is MFA Financial stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't find any rating for MFA stock for the last month.

MFA stock analysis

Daily outlook

After marking all time highs on Thursday, MFA Financial dropped -2.19% today to $7.58.

After several days of continuous rises in past weeks, MFA Financial dropped -2.19% to $7.58. On Thursday, MFA hit a new all time high, pushing higher than on January/24 tops. Check different trading setups that use ATHs as triggers. In this session, MFA Financial stock crossed down the SMA100d line. If you are using SMA100d line as stop loss trigger, double check your position in this stock.

MFA stock chart (daily)

Weekly outlook

MFA Financial eased a shocking -4.05% this week.

MFA Financial shares slid under the support what triggered further losses. Possible next supports for MFA stock are and 7. Not so far away is the last price record MFA Financial marked last week. Since early April 2019 when SMA20w and SMA40w crossed up, MFA price gained $0.87 per share (12.97%). This week, MFA Financial stock crossed down the significant level of the 20-weeks moving average.

MFA stock chart (weekly)

MFA stock price history

MFA IPO was on April 13th, 1998 at $0.78 per share1. Since then, MFA stock grew a 871.80%, with a yearly average of 41.50%. If you had invested right after MFA's IPO a $1,000 in MFA stock in 1998, it would worth $8,718.00 today.

1: Adjusted price after possible price splits or reverse-splits.

MFA stock historical price chart

MFA stock reached all-time highs on Thursday with a price of $8.09.

MFA stock price target

Predicting 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 30 days we have not found any price target for MFA Financial stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

MFA Financial let down analysts when it reported an Earnings per Share (EPS) of $0.13 when the market consensus was $0.17.
MFA earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.2n/a
2017-Q2-n/a0.2n/a
2017-Q32017-11-020.180.15-16.7%
2017-Q42018-02-150.20.2420.0%
2018-Q12018-05-080.180.211.1%
2018-Q22018-08-020.20.17-15.0%
2018-Q32018-11-060.180.195.6%
2018-Q42019-02-210.170.13-23.5%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw an awful drop down of -6.49% to $347.88 M dollars. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) stayed constant a 0.10% to 86.76%.

MFA annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
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 M0.85%$313 M87.3%-0.18%
2017$372 M3.84%$322 M86.7%3.11%
2018$348 M-6.49%$302 M86.8%-6.39%

Quarterly financial results

MFA Financial reported $72.73 million in sales for 2018-Q4, a -25.90% decline compared to previous quarter. Reported quarter income marked $60.88 M with a profit margin of 83.70%. Profit margin slipped 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 scary loss and collapsed a -38.04%.
MFA quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$142 M-$78 M54.6%-
2017-Q2$143 M0.38%$79 M55.6%2.38%
2017-Q3$85 M-40.52%$64 M75.1%-19.72%
2017-Q4$117 M38.18%$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 M18.24%$87 M88.8%23.78%
2018-Q4$73 M-25.90%$61 M83.7%-30.13%

MFA Financial ownership

When you are planning to invest in a company, it's always worth to review its ownership structure.

MFA Financial shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.59% of all shares.

In case of MFA Financial stock, 79.87% 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.

The following table compares ownership indicators for other stocks related to MFA Financial:

MFA
Market cap$3.4 B
Total shares452.4 M
Float shares449.4 M
  - Institutional holdings (%)79.9%
  - Insider holdings (%)0.6%
Shares in short selling0.0%

MFA summary

Tuesday, February 25th, 2020
Open$7.77
Close$7.58
Day range$7.53 - $7.78
Previous close$7.75
Session gain-2.19%
Average true range$0.11
50d mov avg$7.77
100d mov avg$7.58
200d mov avg$7.21
Daily pattern
Weekly pattern lt06c

MFA Financial performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare MFA Financial performance to :
Stock3m6m12m
MFAMFA Financial1.47%11.31%16.08%

MFA Financial competitors

Unfortunately, we could not find any public company that could be defined as MFA Financial competitor. This doesn't mean MFA Financial does not have any competitor in the market, it's just we could not detected it.