Keefe, Bruyette & Woods Cuts Fannie Mae (OTCMKTS:FNMA) Price Target to $3.50

Key Points

• Keefe, Bruyette & Woods cut Fannie Mae’s price target from $6.25 to $3.50 and maintained an “underperform” rating, implying 19.45% downside from the prior close.
• Analyst sentiment is broadly cautious: Fannie Mae has a consensus “Hold” rating and an average price target of $9.70, with ratings ranging from Strong Buy to Sell.
• Shares fell to $4.34 on Monday, while the company’s latest quarterly results exceeded expectations, reporting $0.68 in EPS and $7.57 billion in revenue.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) had its price target reduced by analysts at Keefe, Bruyette & Woods from $6.25 to $3.50 in a report issued on Monday, Benzinga reports. The firm currently has an "underperform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' target price suggests a potential downside of 19.45% from the company's previous close.

A number of other research analysts also recently commented on FNMA. BTIG Research downgraded shares of Fannie Mae from a "buy" rating to a "neutral" rating in a research note on Tuesday, June 16th. Wedbush reissued a "neutral" rating and set a $8.00 price target on shares of Fannie Mae in a research report on Thursday, July 30th. Finally, B. Riley Financial decreased their price objective on shares of Fannie Mae from $8.00 to $7.00 and set a "neutral" rating for the company in a report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Fannie Mae has a consensus rating of "Hold" and an average target price of $9.70.

Fannie Mae Stock Performance

Shares of FNMA stock traded down $0.33 on Monday, hitting $4.34. The stock had a trading volume of 3,328,845 shares, compared to its average volume of 5,108,521. The stock's 50 day moving average is $5.86 and its 200-day moving average is $6.46. The firm has a market capitalization of $5.03 billion, a price-to-earnings ratio of 108.65 and a beta of 1.70. Fannie Mae has a 52-week low of $3.60 and a 52-week high of $13.05.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $0.68 EPS for the quarter, topping 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 firm had revenue of $7.57 billion for the quarter, compared to analyst estimates of $7.32 billion. Equities analysts expect that Fannie Mae will post 2.63 earnings per share for the current year.

Institutional Investors Weigh In On Fannie Mae

A hedge fund recently bought a new stake in Fannie Mae stock. Hennessy Advisors Inc. acquired a new position in shares of Fannie Mae (OTCMKTS:FNMA - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund acquired 30,000 shares of the financial services provider's stock, valued at approximately $195,000. Institutional investors 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 liquidity and stability in the U.S. housing finance system. The company does not generally lend directly to homebuyers. Instead, it purchases qualifying residential mortgages from approved lenders, providing those institutions with funds to originate additional loans.

Fannie Mae finances its activities primarily by issuing debt and mortgage-backed securities. It also guarantees the timely payment of principal and interest on many mortgage-backed securities backed by the loans it purchases.

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