Fannie Mae (OTCMKTS:FNMA) Rating Lowered to Hold at Mizuho

Key Points

• Mizuho downgraded Fannie Mae from “strong buy” to “hold,” adding to a cautious analyst outlook. The stock has a consensus “reduce” rating and an $8.70 price target.
• Fannie Mae shares opened at $3.47, down 14.2%, and are near their 12-month low of $3.24, well below their 50-day and 200-day moving averages.
• The company exceeded quarterly expectations, reporting $0.68 in EPS versus estimates of $0.63 and revenue of $7.57 billion versus $7.32 billion expected.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) was downgraded by equities research analysts at Mizuho from a "strong-buy" rating to a "hold" rating in a research note issued on Monday, Zacks reports.

FNMA has been the subject of a number of other reports. BTIG Research cut shares of Fannie Mae from a "buy" rating to a "neutral" rating in a research report on Tuesday, June 16th. B. Riley Financial dropped their price objective on shares of Fannie Mae from $8.00 to $7.00 and set a "neutral" rating on the stock in a research note on Thursday, July 30th. Keefe, Bruyette & Woods cut their price objective on shares of Fannie Mae from $6.25 to $3.50 and set an "underperform" rating on the stock in a report on Monday, September 28th. Finally, Wedbush reaffirmed a "neutral" rating and set a $8.00 target price on shares of Fannie Mae in a research note on Thursday, July 30th. Five equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Fannie Mae has a consensus rating of "Reduce" and a consensus price target of $8.70.

Fannie Mae Stock Down 14.2%

Shares of OTCMKTS:FNMA opened at $3.47 on Monday. The company's 50 day moving average price is $5.43 and its two-hundred day moving average price is $6.35. Fannie Mae has a 12-month low of $3.24 and a 12-month high of $12.87. The firm has a market cap of $4.02 billion, a PE ratio of 86.77 and a beta of 1.68.

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

Institutional Trading of Fannie Mae

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

About Fannie Mae

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 eligible residential mortgage loans from approved lenders and providing liquidity that helps banks and other mortgage originators continue making loans to homebuyers and homeowners.

Fannie Mae primarily supports single-family and multifamily housing. It finances and securitizes qualifying mortgage loans into mortgage-backed securities and generally guarantees the timely payment of principal and interest to investors in those securities.

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