Fannie Mae (OTCMKTS:FNMA) Given Average Rating of "Hold" by Analysts

Key Points

• Analysts have a consensus “Hold” rating on Fannie Mae, with four holds, one sell, one buy and one strong buy among seven analysts. The average 12-month price target is $12.25.
• Fannie Mae shares opened at $5.98, versus a 52-week range of $3.60 to $15.99, while recent analyst actions included target cuts and a downgrade from “buy” to “neutral.”
• The company exceeded quarterly expectations, reporting $0.68 EPS versus a $0.63 consensus and revenue of $7.57 billion versus $7.32 billion expected. Institutional ownership remains very low at 0.02%.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) has been given an average recommendation of "Hold" by the seven ratings firms that are presently covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating, one has issued a buy rating and one has issued a strong buy rating on the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $12.25.

FNMA has been the subject of a number of analyst reports. Wedbush reaffirmed a "neutral" rating and issued a $8.00 price target on shares of Fannie Mae in a research report on Thursday, July 30th. B. Riley Financial decreased their target price on Fannie Mae from $8.00 to $7.00 and set a "neutral" rating for the company in a research note on Thursday, July 30th. Finally, BTIG Research lowered Fannie Mae from a "buy" rating to a "neutral" rating in a report on Tuesday, June 16th.

Fannie Mae Stock Performance

Shares of OTCMKTS FNMA opened at $5.98 on Tuesday. Fannie Mae has a one year low of $3.60 and a one year high of $15.99. The business has a 50-day moving average price of $6.10 and a two-hundred day moving average price of $6.65. The firm has a market capitalization of $6.93 billion, a PE ratio of 149.54 and a beta of 1.70.

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, 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 company had revenue of $7.57 billion during the quarter, compared to the consensus estimate of $7.32 billion. Research analysts anticipate that Fannie Mae will post 2.65 EPS for the current year.

Institutional Trading of Fannie Mae

A hedge fund recently bought a new stake in Fannie Mae stock. Ratan Capital Management LP purchased a new stake in Fannie Mae (OTCMKTS:FNMA - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 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.

Fannie Mae Company Profile

The Federal National Mortgage Association, commonly known as Fannie Mae OTCMKTS: FNMA, is a government-sponsored enterprise established by Congress in 1938 as part of the New Deal to support the U.S. housing market. Headquartered in Washington, DC, Fannie Mae's mission is to promote liquidity, stability and affordability in the mortgage market. The company operates by purchasing residential mortgage loans from financial institutions, pooling them into mortgage-backed securities (MBS), and providing guarantees to investors against borrower default.

In its core business, Fannie Mae works with mortgage lenders across the United States—including banks, credit unions and mortgage finance companies—to ensure a steady flow of capital for homebuyers and homeowners seeking refinancing.

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