Fannie Mae (OTCMKTS:FNMA) Share Price Passes Above 50 Day Moving Average - Time to Sell?

Key Points

• Price action: Fannie Mae's stock passed above its 50‑day moving average of $10.62, trading as high as $10.71 and last at $10.69 on a volume of 2,214,650 shares.
• Analyst view: The consensus rating is a Hold with an average price target of $12.88 (ratings split: 2 Buy, 2 Hold, 1 Sell), including Deutsche Bank's $20 and Wedbush's $11.50 targets.
• Fundamentals: Market cap is $12.38B with a P/E of 5.82, but the company missed quarterly EPS ($0.65 vs. $0.72), posted a negative ROE (‑37.47%) and revenue below estimates.

Fannie Mae (OTCMKTS:FNMA - Get Free Report)'s stock price passed above its 50 day moving average during trading on Wednesday . The stock has a 50 day moving average of $10.62 and traded as high as $10.71. Fannie Mae shares last traded at $10.69, with a volume of 2,214,650 shares changing hands.

Analysts Set New Price Targets

FNMA has been the subject of several research reports. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Fannie Mae in a report on Thursday, September 11th. They issued a "buy" rating and a $20.00 price objective for the company. B. Riley upgraded shares of Fannie Mae to a "hold" rating in a report on Wednesday, October 29th. Keefe, Bruyette & Woods lifted their price objective on Fannie Mae from $4.00 to $10.00 and gave the company an "underperform" rating in a research report on Thursday, September 18th. Zacks Research raised Fannie Mae from a "strong sell" rating to a "hold" rating in a research report on Monday, December 29th. Finally, Wedbush started coverage on Fannie Mae in a research note on Tuesday, November 25th. They issued an "outperform" rating and a $11.50 target price for the company. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $12.88.

Fannie Mae Stock Performance

The company has a market cap of $12.38 billion, a P/E ratio of 5.82 and a beta of 1.78. The stock has a 50-day moving average of $10.62 and a two-hundred day moving average of $10.78.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last released its earnings results on Wednesday, October 29th. The financial services provider reported $0.65 EPS for the quarter, missing the consensus estimate of $0.72 by ($0.07). Fannie Mae had a negative return on equity of 37.47% and a net margin of 2.61%.The company had revenue of $7.31 billion during the quarter, compared to the consensus estimate of $7.72 billion.

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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