Traders Buy Large Volume of Call Options on MFA Financial (NYSE:MFA)

MFA Financial, Inc. (NYSE:MFA) was the target of some unusual options trading on Tuesday. Stock investors bought 50,651 call options on the company. This is an increase of 8,529% compared to the typical volume of 587 call options.

MFA Financial Stock Up 0.1%

MFA traded up $0.01 during trading hours on Tuesday, reaching $9.65. 1,317,243 shares of the company’s stock traded hands, compared to its average volume of 1,320,509. The firm has a 50-day moving average price of $9.37 and a 200 day moving average price of $9.50. MFA Financial has a 52-week low of $7.85 and a 52-week high of $11.08. The firm has a market capitalization of $985.72 million, a PE ratio of 11.35 and a beta of 1.61.

MFA Financial (NYSE:MFA) last announced its quarterly earnings results on Thursday, November 6th. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.30 by ($0.10). MFA Financial had a net margin of 17.51% and a return on equity of 7.26%. The company had revenue of $101.03 million during the quarter, compared to analysts’ expectations of $57.40 million. During the same quarter in the prior year, the business posted $0.37 earnings per share. Equities analysts predict that MFA Financial will post 1.5 EPS for the current fiscal year.

MFA Financial Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, January 30th. Stockholders of record on Wednesday, December 31st will be issued a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 14.9%. The ex-dividend date is Wednesday, December 31st. MFA Financial’s payout ratio is currently 169.41%.

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. Weiss Ratings restated a “sell (d+)” rating on shares of MFA Financial in a report on Monday. Wall Street Zen upgraded MFA Financial from a “sell” rating to a “hold” rating in a research report on Monday, November 10th. Finally, UBS Group decreased their target price on MFA Financial from $10.50 to $10.25 and set a “buy” rating for the company in a report on Tuesday, November 18th. Three research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, MFA Financial currently has an average rating of “Hold” and a consensus target price of $11.05.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. AQR Capital Management LLC purchased a new stake in shares of MFA Financial during the 1st quarter worth approximately $259,000. Goldman Sachs Group Inc. increased its position in MFA Financial by 16.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 691,408 shares of the real estate investment trust’s stock worth $7,094,000 after purchasing an additional 96,365 shares during the period. Caxton Associates LLP acquired a new position in shares of MFA Financial during the 1st quarter worth $1,717,000. Strs Ohio acquired a new stake in shares of MFA Financial in the 1st quarter worth approximately $196,000. Finally, Voya Investment Management LLC increased its position in shares of MFA Financial by 3.7% in the first quarter. Voya Investment Management LLC now owns 262,851 shares of the real estate investment trust’s stock valued at $2,697,000 after buying an additional 9,448 shares in the last quarter. 65.28% of the stock is currently owned by hedge funds and other institutional investors.

About MFA Financial

MFA Financial, Inc, headquartered in New York City, is a real estate investment trust that specializes in investing in residential mortgage loans and mortgage-related securities. The company’s primary objective is to generate attractive risk-adjusted returns through net interest income and capital appreciation. As a mortgage REIT, MFA Financial focuses on constructing a diversified portfolio of agency and non-agency residential mortgage assets, leveraging its expertise in acquiring, financing and servicing mortgage products.

MFA Financial’s investment portfolio encompasses a wide range of mortgage instruments, including adjustable-rate and fixed-rate mortgage loans, interest-only securities, and agency mortgage-backed securities guaranteed by government-sponsored entities.