Fannie Mae (OTCMKTS:FNMA) Earns "Neutral" Rating from Wedbush

Key Points

• Wedbush reaffirmed a “neutral” rating on Fannie Mae, with a $3.50 price target implying 6.42% downside from the stock’s current price.
• Analyst sentiment remains cautious: five analysts rate the stock a Hold and one rates it Sell, resulting in a consensus “Reduce” rating and an average price target of $7.80.
• Fannie Mae recently exceeded quarterly expectations, reporting $0.68 in earnings per share versus a $0.63 estimate and $7.57 billion in revenue versus a $7.32 billion forecast.

Fannie Mae (OTCMKTS:FNMA - Get Free Report)'s stock had its "neutral" rating reaffirmed by stock analysts at Wedbush in a report issued on Thursday, Benzinga reports. They presently have a $3.50 price objective on the financial services provider's stock. Wedbush's price target points to a potential downside of 6.42% from the stock's current price.

Other equities research analysts have also recently issued reports about the stock. B. Riley Financial cut their price target on shares of Fannie Mae from $8.00 to $7.00 and set a "neutral" rating on the stock in a research report on Thursday, July 30th. Keefe, Bruyette & Woods reduced their price objective on shares of Fannie Mae from $6.25 to $3.50 and set an "underperform" rating for the company in a research note on Monday, September 28th. Finally, Mizuho set a $5.00 price objective on Fannie Mae and gave the company a "neutral" rating in a report on Monday, October 12th. Five analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Reduce" and an average target price of $7.80.

Fannie Mae Stock Up 0.3%

Shares of FNMA stock opened at $3.74 on Thursday. The company's fifty day simple moving average is $5.09 and its 200-day simple moving average is $6.22. The firm has a market cap of $4.33 billion, a PE ratio of 93.52 and a beta of 1.68. Fannie Mae has a 12 month low of $2.96 and a 12 month high of $12.87.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last announced its earnings results on Wednesday, July 29th. The financial services provider reported $0.68 EPS for the quarter, topping the consensus estimate of $0.63 by $0.05. The business had revenue of $7.57 billion during the quarter, compared to analysts' expectations of $7.32 billion. Fannie Mae had a net margin of 4.59% and a negative return on equity of 76.66%. On average, equities analysts predict that Fannie Mae will post 2.63 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Fannie Mae

An institutional investor recently bought a new stake in Fannie Mae stock. Ratan Capital Management LP bought a new position in shares of Fannie Mae (OTCMKTS:FNMA - Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 79,000 shares of the financial services provider's stock, valued at approximately $514,000. Institutional investors own 0.02% of the company's stock.

Fannie Mae Company Profile

Fannie Mae, formally known as the Federal National Mortgage Association, is a government-sponsored enterprise that supports the U.S. housing finance system. It operates in the secondary mortgage market, purchasing qualifying residential mortgage loans from approved lenders and helping provide liquidity so those lenders can continue offering mortgage financing to homebuyers and homeowners.

Fannie Mae finances its activities primarily by issuing debt and mortgage-backed securities. It also guarantees certain mortgage-backed securities, helping connect mortgage lenders with institutional investors.

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