Fannie Mae (OTCMKTS:FNMA) Shares Cross Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Shares crossed below its 200-day moving average, with the 200-day MA at $10.41; the stock traded as low as $6.01 and last at $6.16 on volume of 4,066,311 shares.
• Analyst coverage is mixed — MarketBeat shows a consensus Hold rating with a $14.30 price target, while individual ratings range from Strong Buy to Sell (1 Strong Buy, 2 Buy, 1 Hold, 2 Sell).
• Recent fundamentals disappointed: quarterly EPS of $0.60 missed the $0.68 estimate, the company reported a negative return on equity (-49.21%), and it has a market cap of $7.13 billion and a P/E of 2.47.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) shares crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $10.41 and traded as low as $6.01. Fannie Mae shares last traded at $6.16, with a volume of 4,066,311 shares traded.

Analyst Ratings Changes

FNMA has been the subject of several research reports. B. Riley Financial restated a "neutral" rating on shares of Fannie Mae in a research note on Thursday, February 12th. BTIG Research assumed coverage on shares of Fannie Mae in a report on Monday, January 26th. They set a "buy" rating and a $20.00 target price for the company. Zacks Research downgraded shares of Fannie Mae from a "hold" rating to a "strong sell" rating in a research report on Wednesday, February 11th. Finally, Wedbush started coverage on shares of Fannie Mae in a report on Tuesday, November 25th. They issued an "outperform" rating and a $11.50 price target on the stock. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $14.30.

Fannie Mae Stock Performance

The firm has a market cap of $7.13 billion, a price-to-earnings ratio of 2.47 and a beta of 1.78. The business's 50 day moving average price is $8.46 and its 200 day moving average price is $10.41.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last posted its earnings results 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). Fannie Mae had a net margin of 2.22% and a negative return on equity of 49.21%. The firm had revenue of $7.33 billion during the quarter, compared to analyst estimates of $7.33 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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