Fannie Mae (OTCMKTS:FNMA) Rating Increased to Hold at Zacks Research

Key Points

• Zacks Research upgraded Fannie Mae from "strong sell" to "hold," while the analyst mix remains mixed (one Strong Buy, two Buy, two Hold, one Sell) and the MarketBeat consensus target is $14.00, reflecting uneven investor sentiment.
• Fannie Mae reported quarterly EPS of $0.60 (missed $0.68) with revenue in line, a net margin of 2.22% and a negative return on equity of 49.21%; the stock opened at $7.64 with a market cap of $8.85 billion and a 52-week range of $3.60–$15.99.
• Credit-score model updates (accepting VantageScore 4.0 now and FICO 10T later, plus planned use of alternative rent/utilities data) could expand the pool of eligible borrowers and support purchase volume, but regulatory/legal overhang and recent price-target cuts keep near-term uncertainty.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) was upgraded by analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Tuesday,Zacks.com reports.

Several other equities analysts also recently issued reports on FNMA. BTIG Research began coverage on shares of Fannie Mae in a report on Monday, January 26th. They set a "buy" rating and a $20.00 price objective on the stock. Keefe, Bruyette & Woods decreased their price objective on shares of Fannie Mae from $10.00 to $8.50 and set an "underperform" rating on the stock in a report on Monday. Finally, B. Riley Financial reaffirmed a "neutral" rating on shares of Fannie Mae in a report on Thursday, February 12th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $14.00.

Fannie Mae Stock Down 3.2%

FNMA opened at $7.64 on Tuesday. The company has a market cap of $8.85 billion, a price-to-earnings ratio of 3.27 and a beta of 1.73. Fannie Mae has a 52-week low of $3.60 and a 52-week high of $15.99. The firm's fifty day simple moving average is $6.88 and its two-hundred day simple moving average is $9.13.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The financial services provider reported $0.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.68 by ($0.08). The company had revenue of $7.33 billion for the quarter, compared to analysts' expectations of $7.33 billion. Fannie Mae had a net margin of 2.22% and a negative return on equity of 49.21%. On average, research analysts forecast that Fannie Mae will post 2.55 EPS for the current year.

Key Fannie Mae News

Here are the key news stories impacting Fannie Mae this week:

• Positive Sentiment: Fannie announced credit-score model updates to allow VantageScore 4.0 now and FICO 10T in the future, widening acceptable scoring options for loans delivered to Fannie — this can expand the pool of eligible borrowers and support purchase volume growth. Read More.
• Positive Sentiment: FHFA/HUD-level rollout intends to include alternative data (rent/utilities) and a limited lender rollout, which could help renters gain access to mortgage credit and improve origination flow for lenders working with Fannie. Read More.
• Neutral Sentiment: Market reaction has been concentrated on credit-score vendors rather than Fannie’s operations — FICO shares plunged on the news, reflecting competitive shifts in the scoring market; that weakens FICO but represents policy execution rather than an immediate financial hit to Fannie. Read More.
• Neutral Sentiment: FHFA’s modernization move opens credit-score competition and promises publication of historical score data this summer — useful for modelers and investors but not an immediate earnings driver. Read More.
• Negative Sentiment: Analyst sentiment has softened: Keefe, Bruyette & Woods cut Fannie Mae’s price target to $8.50, which can weigh on near-term investor expectations. Read More.
• Negative Sentiment: Regulatory and legal overhang persists — public comments by a Fed nominee highlighting risks at the GSEs and ongoing litigation (FHFA asking a court to overturn a $612M verdict in a shareholder class action) keep governance and liability uncertainty on investors’ radar. Read More. Read More.

About Fannie Mae

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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