Fannie Mae (OTCMKTS:FNMA) Shares Down 10.5% - What's Next?

Key Points

• Shares plunged 10.5% on Wednesday to about $9.54 (intraday low $9.17) on roughly 6.03 million shares traded, down ~39% from average daily volume after a prior close of $10.66.
• Analyst sentiment is mixed with a consensus rating of "Reduce" and an average price target of $13.33 (1 Buy, 1 Hold, 2 Sell); notable notes include Deutsche Bank's $20 buy and Zacks' downgrade to "strong sell".
• Fannie missed Q3 expectations, reporting EPS of $0.65 vs. $0.72 expected and revenue of $7.31B vs. $7.72B, and showed a negative return on equity (-37.47%) despite a positive net margin.

Fannie Mae (OTCMKTS:FNMA - Get Free Report)'s stock price dropped 10.5% on Wednesday . The company traded as low as $9.17 and last traded at $9.54. Approximately 6,031,985 shares were traded during mid-day trading, a decline of 39% from the average daily volume of 9,919,125 shares. The stock had previously closed at $10.66.

Analysts Set New Price Targets

A number of research firms recently issued reports on FNMA. B. Riley upgraded shares of Fannie Mae to a "hold" rating in a research report on Wednesday, October 29th. Deutsche Bank Aktiengesellschaft began coverage on Fannie Mae in a research note on Thursday, September 11th. They set a "buy" rating and a $20.00 price objective for the company. Keefe, Bruyette & Woods upped their target price on Fannie Mae from $4.00 to $10.00 and gave the stock an "underperform" rating in a research note on Thursday, September 18th. Finally, Zacks Research cut Fannie Mae from a "hold" rating to a "strong sell" rating in a research report on Monday, November 3rd. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Fannie Mae has a consensus rating of "Reduce" and an average price target of $13.33.

Fannie Mae Trading Down 10.2%

The stock has a 50-day moving average price of $12.16 and a 200 day moving average price of $10.52. The stock has a market capitalization of $11.08 billion, a price-to-earnings ratio of 5.88 and a beta of 2.01.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last released its quarterly earnings results on Wednesday, October 29th. The financial services provider reported $0.65 earnings per share for the quarter, missing analysts' consensus estimates of $0.72 by ($0.07). The business had revenue of $7.31 billion during the quarter, compared to analyst estimates of $7.72 billion. Fannie Mae had a negative return on equity of 37.47% and a net margin of 7.02%.

Fannie Mae Company Profile

Federal National Mortgage Association provides financing solutions for mortgages in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment securitizes and purchases single-family fixed-rate or adjustable-rate, first-lien mortgage loans, or mortgage-related securities backed by these loans; and loans that are insured by Federal Housing Administration, loans guaranteed by the Department of Veterans Affairs and Rural Development Housing and Community Facilities Program of the U.S.

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