Fannie Mae (OTCMKTS:FNMA) Lowered to Neutral Rating by Wedbush

Key Points

• Wedbush downgraded Fannie Mae (OTCMKTS:FNMA) from "outperform" to "neutral" and set a $8.00 price target, implying about a 2.2% downside from the company's current price.
• The analyst picture is mixed: MarketBeat shows an average rating of "Hold" with an average price target of $13.30, while individual recommendations range from Strong Buy to Sell.
• FNMA opened at $8.18 with a $9.47B market cap and a very high P/E (~819); last quarter it reported $0.63 EPS and $7.28B in revenue, roughly in line with estimates.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) was downgraded by equities researchers at Wedbush from an "outperform" rating to a "neutral" rating in a report released on Friday. They currently have a $8.00 target price on the financial services provider's stock. Wedbush's price target indicates a potential downside of 2.20% from the company's current price.

FNMA has been the topic of several other reports. B. Riley Financial reiterated a "neutral" rating on shares of Fannie Mae in a research report on Thursday, February 12th. Zacks Research upgraded Fannie Mae from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 21st. Keefe, Bruyette & Woods cut their price target on Fannie Mae from $10.00 to $8.50 and set an "underperform" rating for the company in a report on Monday, April 20th. Finally, BTIG Research assumed coverage on shares of Fannie Mae in a research note on Monday, January 26th. They set a "buy" rating and a $20.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $13.30.

Fannie Mae Price Performance

FNMA opened at $8.18 on Friday. The stock's 50 day simple moving average is $6.83 and its 200 day simple moving average is $8.96. The stock has a market cap of $9.47 billion, a P/E ratio of 818.82 and a beta of 1.73. Fannie Mae has a 1-year low of $3.60 and a 1-year high of $15.99.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last posted its earnings results on Wednesday, April 29th. The financial services provider reported $0.63 EPS for the quarter, hitting analysts' consensus estimates of $0.63. The company had revenue of $7.28 billion for the quarter, compared to the consensus estimate of $7.25 billion. Fannie Mae had a negative return on equity of 62.46% and a net margin of 4.53%. Research analysts expect that Fannie Mae will post 2.53 EPS for the current fiscal 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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