Where Does MFA Financial Inc. (NYSE:MFA) Stock Go From Here?

MFA Financial Inc. (NYSE: MFA) was one of the biggest movers in the recent trading session, with the company’s stock currently changing hands at 0.05 points up or 0.64% higher on the previous close. So what do we make of this stock that is clearly one of the hottest on the market now? The MFA stock is trading at $7.87 from a close of $7.82 on 01/15/20. The day’s price range saw the stock hit a low of $7.82, while the highest price level was $7.91 during the intraday trading.

Is the MFA stock going to continue the plunge or will it steady in coming sessions to climb above its 5-day high price of $7.91. MFA Financial Inc. (NYSE: MFA) has a 52-week price range of between $6.93 and $8.00. Notably, the reduced performance in the current session comes on the back of condensed market activity for the stock, as its daily trading volume to 5384387, compared to its 3-months daily average volume of 2.63 million. In comparison, the average volume for the last 50 days stands at 2,921,046.

What about the stock’s price forecasts? MFA had 6 analysts who offered their 12-month price predictions for the MFA Financial Inc. shares. The group has given the stock a consensus price target of $7.85, with the lowest forecast being put at $7.50. The highest estimate by the 6 analysts is $8.25. The median price target estimate of $8.00 for the stock represents a 1.63% jump in value from the previous price of $7.87. Looking at the 52-week price ranges, the stock’s current price level is 13.56% from its 52-week high price and -1.63% down from its 52-week low in the same period.

MFA Financial Inc. shares have surged 2.74% over the past week, but its 1-month performance is in the green at 1.42%. Its performance in the current quarter is up 4.52%, while that figure shoots to 8.55% over the past half-year period. Further, we see that the stock’s 12-month charts show that it has gained by 11.63%, with the year-to-date prices up by 2.88%.

The company has a market cap of 3.55 billion and a return on assets (ROA) of 2.70%. In gauging how profitable company analysts and investors look at the respective company’s ROA, with returns above 5% generally regarded as good. Also important is the company’s return on equity (ROE), with MFA’s at 10.30% indicating that the management is able to generate impressive income with whatever equity at their disposal. If you put your money on this stock, then a forecast ROI is at 2.50%.

But what do Wall Street analysts tracking this stock recommend, given that it has 451.02 million shares outstanding? 6 analysts polled have a consensus recommendation rating of 3.80, indicating that MFA is a Overweight stock at the moment. This mean rating was at 4.00 a month ago. Wedbush called it a Outperform stock on October 10, 2019, while RBC Capital Mkts rated it a Outperform in its note released on October 03, 2019. Of the 6 analysts, 0 analysts rate the MFA stock as Overweight, while 3 of them rated it as a Hold. 3 analysts rate MFA Financial Inc. as a Buy, while 0 suggested its Underweight. Only 0 analyst advised investors to sell.

Let’s glean at the company’s earnings forecasts for the current quarter and annual growth estimate for the next 5-year period. The analyst forecasts for this stock’s earnings per share (EPS) for the current quarter (Dec 2019) ranged from a low of $0.2 per share to $0.21 per share. The average estimate by the 6 analysts for the MFA shares was $0.2 a share, while the company’s last-quarter results returned an EPS of $0.18. Looking at the current EPS trends, seven days ago, MFA had its Dec 2019 estimates at $0.2 per share while the stock’s EPS was forecasted at the $0.2, a month ago. However, the company’s EPS growth for this quarter stands at 53.80%, while that growth rate for the next fiscal quarter is forecasted at 5.30%. The annual earnings per share growth for the next five years is estimated to be 5.47%, which compares to the 1.30% recorded in the past five-year period.

Let’s briefly check out revenue growth estimates for the company, which is put at 19.70% in the current quarter. However, the next quarter should see net revenue growth of over 47.90%, with analysts forecasting the company’s 12-month growth estimates at 32.40%. 2 analysts have forecast that MFA Financial Inc. will see its revenue growth net between $71 million and $76.9 million for the current quarter. The next quarter should see revenue returns of between $84.3 million and $84.3 million.The average revenue for the quarter is expected at $73.95 million, while for the next quarter, it jumps to $84.3 million. Sales growth for the year are estimated at 32.40%.