Fannie Mae (OTCMKTS:FNMA) Share Price Crosses Below 200-Day Moving Average - What's Next?

Key Points

• Fannie Mae shares fell below their 200-day moving average, trading as low as $6.14 and closing at $6.29 versus the $6.82 long-term average.
• Analyst sentiment is mixed but leans neutral: the stock has an average “Hold” rating and a $12.25 price target, with recent firms cutting ratings or targets while Mizuho initiated coverage with an “Outperform” rating and a $10 target.
• Fannie Mae beat quarterly expectations, reporting $0.68 in EPS versus the $0.63 consensus and $7.57 billion in revenue versus estimates of $7.32 billion; institutional ownership remains minimal at 0.02%.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) shares passed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $6.82 and traded as low as $6.14. Fannie Mae shares last traded at $6.29, with a volume of 2,324,340 shares traded.

Wall Street Analyst Weigh In

Several research firms have recently commented on FNMA. Mizuho assumed coverage on shares of Fannie Mae in a research note on Monday, May 4th. They set an "outperform" rating and a $10.00 price target on the stock. BTIG Research cut shares of Fannie Mae from a "buy" rating to a "neutral" rating in a research report on Tuesday, June 16th. Wedbush reaffirmed a "neutral" rating and set a $8.00 price objective on shares of Fannie Mae in a report on Thursday, July 30th. Finally, B. Riley Financial decreased their price objective on Fannie Mae from $8.00 to $7.00 and set a "neutral" rating on the stock in a research report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $12.25.

Fannie Mae Price Performance

The stock's 50-day moving average price is $6.21 and its 200-day moving average price is $6.82. The company has a market cap of $7.28 billion, a P/E ratio of 157.29 and a beta of 1.66.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $0.68 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 business had revenue of $7.57 billion for the quarter, compared to analyst estimates of $7.32 billion. As a group, analysts expect that Fannie Mae will post 2.59 EPS for the current fiscal year.

Institutional Inflows and Outflows

A hedge fund recently bought a new stake in Fannie Mae stock. Hennessy Advisors Inc. purchased a new position in shares of Fannie Mae (OTCMKTS:FNMA - Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 30,000 shares of the financial services provider's stock, valued at approximately $195,000. 0.02% of the stock is owned by institutional investors.

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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