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MFA Financial, Inc. (MFA)

MFA Financial stock forecast: buy or sell

Close on Sep 28th, 2020
$2.73 0.05%
3 months performance
0.13%
Published: September 29th, 2020 - 9.03am EDT

MFA Financial stock outlook

  • MFA Financial stock exploded 4.6% to close at $2.73 on the stock market yesterday.
  • From the chart point view, price is drawing an scaled downtrend since early June with lower tops and lower bottoms. shares price lost a -24.79% since the downtrend started.
  • MFA Financial, Inc., through its subsidiaries, operates as a real estate investment trust (REIT) in the United States.

Important:
The viewpoints given in this post are personal and not recommendations for you to buy or sell shares. The author of this article does not have an understanding of the particular scenarios of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are published for informational purposes only

MFA Financial stock charts

Should I buy MFA Financial stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is MFA stock a buy?

In the current situation of MFA Financial there is not any eligible buy setup. This doesn't mean we expect a selloff for MFA in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell MFA Financial stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Just as when we have to buy shares, determining when is appropiate to sell is not a fickle decision, and we must adhere our own trading style. We like very simple strategies to guide us on when is the best moment to sell our shares. Be aware that these strategies are not intended for shorting MFA stock

A guiding principle is that you should not hold a trading operation that yields higher than expected losses by the time of purchase. The moment to sell shares should always be dictated by the stop-loss (automatic or manual)

Is it time to sell MFA Financial stock?

In the current situation of MFA Financial there is not any eligible sell setup, so MFA Financial stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell MFA Financial stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the previous 30 days we couldn't find any rating for MFA Financial

Technical analysis

MFA Financial continues trending lower since early June, and has droppped a -24.79%. Like in all downtrends, the stock oscillates drawing lower tops and bottoms. In this case, we have seen 3 consecutive lower tops

SMAs overview

Moving averages are simple tools for investors to detect momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

MFA SMAs chart

Supports and resistances

Traders use support and resistance levels to spot price points in the stock price action that may work as barriers, containing the price of a stock to move in certain direction. Supports are levels where the price may stop as it falls. Price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down this level, it is likely to continue falling until meeting another support level. On the contrary, a resistance level is where the price tends to find opposition as it moves up. In the same way, this means that the price is more likely to "bounce off" at this level, and if it finally ruptures this level, the price will climb easily until it meets the next resistance

The current resistance levels are:

  • R1: $2.74 (0.37% above)
  • R2: $2.77 (1.47% above)
  • R3: $2.80 (2.56% above)
  • The current support levels are:

  • S1: $2.61 (-4.4% below)
  • S2: $2.60 (-4.76% below)
  • S3: $2.59 (-5.13% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. The Bollinger Bands are bands that run around a moving average, varying the distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    MFA RSI chart

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that track price action to identify when the price of a share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI ranges from 0% to 100%. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by investors

    When the Relative Strength Indicator fluctuates for so long below 70 and above 30, without any indication of overbought and oversold, the indicator gets of little use, and we currently are in one of these situations.

    MFA RSI chart

    Earnings and financials

    In mid-June, MFA Financial hosted the shareholders event and presented the 2nd-quarter report. MFA Financial missed Wall St estimates and reported earnings of %s a share of $-2.02, that is a -1542.86% lower than the estimates of $0.14. Reported revenues were $158.1 million compared to estimates of $77.5 million.

    In comparison, the EPS for the same quarter last year was $0.20, so posted EPS means a reduction of -1110%. Looking at turnover, figures exploded a 38.14% compared to $114.5M same quarter 12 months ago.

    MFA Financial is hosting the quarterly earnings call on early next November. Analysts estimate a per-share earnings of %s of $0.05, that is a 102.48% higher than previous quarter. If you hold or you are looking to buy MFA Financial stock, be aware that earnings reporting day usually has a higher than usual volatility, and price can gap up or down with exceptionally low liquidity and not respecting your buy/stop-loss orders. You can probably find more details about the earnings conference call and the financial reports on the Investor Relations section of its website: http://www.mfafinancial.com.

    MFA revenues and profits chart