Fannie Mae (OTCMKTS:FNMA) Shares Down 4.8% - What's Next?

Key Points

• Shares fell 4.8% to $7.855 (intraday low $7.60) on Monday, with volume about 830,117 shares — roughly an 89% decline versus the average session volume, pointing to muted trading activity.
• Fannie Mae missed earnings (EPS $0.60 vs. $0.68 expected) while revenue matched estimates; the company reported a 2.22% net margin and a negative return on equity of 49.21%.
• Analyst sentiment is mixed with an average rating of "Hold" and an average target price of $14.30; brokers' stances range from Strong Buy to Sell (1 Strong Buy, 2 Buy, 1 Hold, 2 Sell).

Fannie Mae (OTCMKTS:FNMA - Get Free Report) traded down 4.8% on Monday . The company traded as low as $7.60 and last traded at $7.8550. 830,117 shares traded hands during trading, a decline of 89% from the average session volume of 7,282,719 shares. The stock had previously closed at $8.25.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on FNMA. Zacks Research downgraded Fannie Mae from a "hold" rating to a "strong sell" rating in a research note on Wednesday, February 11th. BTIG Research initiated coverage on Fannie Mae in a research note on Monday, January 26th. They set a "buy" rating and a $20.00 target price on the stock. Finally, B. Riley Financial reiterated a "neutral" rating on shares of Fannie Mae in a research note on Thursday, February 12th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $14.30.

Fannie Mae Stock Performance

The company has a 50 day simple moving average of $6.92 and a two-hundred day simple moving average of $9.36. The firm has a market cap of $9.67 billion, a PE ratio of 3.38 and a beta of 1.73.

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

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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