AlphaQuest LLC Expands Stake in MFA Financial by Over 2,300%

AlphaQuest LLC significantly increased its investment in MFA Financial, Inc. (NYSE:MFA) during the second quarter of 2023, boosting its holdings by an impressive 2,352.2%. According to HoldingsChannel.com, the firm acquired an additional 27,615 shares, bringing its total to 28,789 shares, valued at approximately $272,000 based on its latest filing with the U.S. Securities and Exchange Commission (SEC).

Multiple institutional investors have also adjusted their stakes in MFA Financial recently. Vanguard Group Inc. raised its position by 0.7% in the first quarter, now holding 10,182,250 shares worth $104.47 million after acquiring an additional 70,847 shares. Invesco Ltd. increased its stake by 23.3%, owning 1,508,456 shares valued at $15.48 million following the purchase of 285,344 shares. Other notable investors include Natixis Advisors LLC and Allianz Asset Management GmbH, both of which have also raised their stakes.

As of now, institutional investors and hedge funds collectively own 65.28% of MFA Financial’s stock.

Stock Performance and Dividends

On October 31, 2023, the stock of MFA Financial opened at $9.01, reflecting a 1.0% increase. The company has experienced a 12-month low of $7.85 and a high of $12.64. It currently has a market capitalization of $924.53 million, a price-to-earnings ratio of 10.35, and a beta of 1.70.

MFA Financial recently announced a quarterly dividend of $0.36 per share, which was paid to stockholders on record as of September 30, 2023. This brings the annualized dividend to $1.44, resulting in a dividend yield of 16.0%. The payout ratio stands at 165.52%, indicating a substantial commitment to returning value to shareholders.

Analyst Ratings and Market Outlook

Analysts have expressed mixed sentiments regarding MFA Financial’s stock. UBS Group reiterated a “buy” rating in a research note dated September 3, 2023. Meanwhile, Wall Street Zen upgraded its rating from “sell” to “hold” on October 25, 2023. JMP Securities reduced its price objective from $12.00 to $11.00, maintaining a “market outperform” rating.

Overall, four research analysts recommend buying the stock, while another four suggest holding it. According to MarketBeat.com, the consensus rating is a “Moderate Buy” with an average target price of $11.75.

MFA Financial, Inc. operates as a real estate investment trust (REIT) in the United States, primarily investing in residential mortgage securities, including non-agency and agency mortgage-backed securities, whole loans, and mortgage servicing rights. The company’s strategic investments position it as a significant player in the residential mortgage market, providing potential growth opportunities as the economy evolves.

For further updates and analysis on MFA Financial, investors can visit HoldingsChannel.com to access the latest filings and insider trades.