Fannie Mae (OTCMKTS:FNMA) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Analysts broadly recommend holding Fannie Mae: Seven firms give the stock a consensus “Hold” rating, with one sell, four holds, one buy and one strong buy. The average 12-month price target is $12.25.
• Recent analyst actions have generally been cautious, including price-target cuts from Keefe, Bruyette & Woods and B. Riley, while Wedbush and BTIG Research maintain neutral ratings.
• Fannie Mae’s latest quarterly results exceeded expectations, reporting $0.68 in EPS versus a $0.63 estimate and $7.57 billion in revenue versus $7.32 billion expected. Shares opened at $6.21, near their 50-day average of $6.24.

Shares of Fannie Mae (OTCMKTS:FNMA - Get Free Report) have earned a consensus recommendation of "Hold" from the seven research firms that are covering the firm, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation, one has issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $12.25.

Several equities analysts have recently issued reports on the company. Wedbush reiterated a "neutral" rating and set a $8.00 price target on shares of Fannie Mae in a research report on Thursday, July 30th. Keefe, Bruyette & Woods cut their price objective on Fannie Mae from $10.00 to $8.50 and set an "underperform" rating for the company in a report on Monday, April 20th. BTIG Research cut Fannie Mae from a "buy" rating to a "neutral" rating in a research note on Tuesday, June 16th. Mizuho began coverage on Fannie Mae in a report on Monday, May 4th. They set an "outperform" rating and a $10.00 target price on the stock. Finally, B. Riley Financial dropped their price target on shares of Fannie Mae from $8.00 to $7.00 and set a "neutral" rating on the stock in a research report on Thursday, July 30th.

Fannie Mae Price Performance

Fannie Mae stock opened at $6.21 on Friday. Fannie Mae has a 12-month low of $3.60 and a 12-month high of $15.99. The stock has a market capitalization of $7.19 billion, a PE ratio of 155.29 and a beta of 1.66. The firm has a 50 day simple moving average of $6.24 and a 200-day simple moving average of $6.90.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last announced its earnings results on Wednesday, July 29th. The financial services provider reported $0.68 EPS for the quarter, topping the consensus estimate of $0.63 by $0.05. The firm had revenue of $7.57 billion for the quarter, compared to analysts' expectations of $7.32 billion. Fannie Mae had a negative return on equity of 76.66% and a net margin of 4.59%. On average, analysts forecast that Fannie Mae will post 2.59 earnings per share 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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