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Video: What is a Stock Split?
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MFA Financial, Inc. is a specialty finance company that invests in residential mortgage loans, residential mortgage-backed securities and other real estate assets. Its targeted investments include principally residential whole loans and residential mortgage securities. Its residential whole loans include purchased performing loans, purchased credit deteriorated and purchased non-performing loans. Its residential mortgage securities include agency mortgage-backed securities (MBS), non-agency MBS, credit risk transfer securities and MSR-related assets, which include term notes backed directly or indirectly by mortgage servicing rights (MSRs). According to our MFA split history records, MFA Financial has had 1 split. | |
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MFA Financial (MFA) has 1 split in our MFA split history database. The split for MFA took place on April 05, 2022. This was a 1 for 4 reverse split, meaning for each 4 shares of MFA owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 250 share position following the split.
When a company such as MFA Financial conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.
Looking at the MFA split history from start to finish, an original position size of 1000 shares would have turned into 250 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into MFA Financial shares, starting with a $10,000 purchase of MFA, presented on a split-history-adjusted basis factoring in the complete MFA split history.

Growth of $10,000.00
With Dividends Reinvested
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Start date: |
05/01/2015 |
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End date: |
04/29/2025 |
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Start price/share: |
$31.20 |
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End price/share: |
$9.91 |
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Starting shares: |
320.51 |
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Ending shares: |
1,060.13 |
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Dividends reinvested/share: |
$22.87 |
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Total return: |
5.06% |
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Average Annual Total Return: |
0.49% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$10,501.09 |
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Years: |
10.00 |
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Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
05/01/2015 |
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End date: |
04/29/2025 |
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Start price/share: |
$31.20 |
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End price/share: |
$9.91 |
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Dividends collected/share: |
$22.87 |
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Total return: |
5.06% |
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Average Annual Total Return: |
0.50% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$10,511.54 |
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Years: |
10.00 |
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Date |
Ratio |
04/05/2022 | 1 for 4 |
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