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

Key Points

• Fannie Mae is currently rated a “Hold” on average by seven analysts, with the mix including one sell, four holds, one buy, and one strong buy. The average 1-year price target stands at $12.75.
• Recent analyst actions were mixed, including downgrades from Wedbush and BTIG Research and a price-target cut from Keefe, Bruyette & Woods. Mizuho, however, initiated coverage with an outperform rating and a $10.00 target.
• The stock last traded at $6.02, below both its 50-day and 200-day moving averages, while Fannie Mae’s latest quarterly results met EPS expectations at $0.63 and slightly beat revenue estimates with $7.28 billion.

Shares of Fannie Mae (OTCMKTS:FNMA - Get Free Report) have been assigned an average rating of "Hold" from the seven research firms that are presently covering the firm, MarketBeat.com reports. One analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation, one has given a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $12.75.

Several equities analysts recently weighed in on the stock. Wedbush cut shares of Fannie Mae from an "outperform" rating to a "neutral" rating and set a $8.00 target price for the company. in a research note on Friday, May 1st. Keefe, Bruyette & Woods dropped their price target on shares of Fannie Mae from $10.00 to $8.50 and set an "underperform" rating on the stock in a research report on Monday, April 20th. Zacks Research upgraded shares of Fannie Mae from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 21st. BTIG Research downgraded shares of Fannie Mae from a "buy" rating to a "neutral" rating in a research report on Tuesday, June 16th. Finally, Mizuho assumed coverage on shares of Fannie Mae in a research report on Monday, May 4th. They issued an "outperform" rating and a $10.00 price objective for the company.

Fannie Mae Stock Performance

Shares of OTCMKTS FNMA opened at $6.02 on Monday. The stock has a 50 day moving average price of $6.72 and a 200 day moving average price of $7.44. The stock has a market capitalization of $6.97 billion, a PE ratio of 602.60 and a beta of 1.62. Fannie Mae has a 52 week low of $3.60 and a 52 week high of $15.99.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The financial services provider reported $0.63 earnings per share for the quarter, hitting the consensus estimate of $0.63. Fannie Mae had a negative return on equity of 65.94% and a net margin of 4.53%.The firm had revenue of $7.28 billion for the quarter, compared to analyst estimates of $7.25 billion. As a group, research analysts forecast that Fannie Mae will post 2.57 EPS for the current year.

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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