There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on November 6, MFA Financial, Inc.'s Executive Vice President, Ronald A. Freydberg, invested $155,600.00 into 20,000 shares of MFA, for a cost per share of $7.78. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. In trading on Wednesday, bargain hunters could buy shares of MFA Financial, Inc. (Symbol: MFA) and achieve a cost basis even cheaper than Freydberg, with shares changing hands as low as $7.75 per share. It should be noted that Freydberg has collected $0.20/share in dividends since the time of their purchase, so they are currently up 2.2% on their purchase from a total return basis. MFA Financial, Inc. shares are currently trading off about 1.3% on the day. The chart below shows the one year performance of MFA shares, versus its 200 day moving average:
Looking at the chart above, MFA's low point in its 52 week range is $7.63 per share, with $8.90 as the 52 week high point - that compares with a last trade of $7.75. By comparison, below is a table showing the prices at which MFA insider buying was recorded over the last six months:
Ronald A. Freydberg
Executive Vice President
The current annualized dividend paid by MFA Financial, Inc. is $0.80/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 12/27/2017. Below is a long-term dividend history chart for MFA, which can be of good help in judging whether the most recent dividend with approx. 10.2% annualized yield is likely to continue.
According to the ETF Finder at ETF Channel, MFA makes up 299.37% of the Multi-Asset Diversified Income Index Fund ETF (Symbol: MDIV) which is trading higher by about 0.4% on the day Wednesday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.