Fannie Mae (OTCMKTS:FNMA) Shares Pass Below 200-Day Moving Average - Here's Why

Key Points

• Fannie Mae shares fell below their 200-day moving average on Wednesday, with the stock trading as low as $5.80 and last changing hands at $5.86. The move signals technical weakness after a recent decline.
• Analyst sentiment is cautious overall, with several recent downgrades and a consensus rating of "Hold." MarketBeat data shows an average price target of $12.75, though individual targets have been cut by some firms.
• Recent earnings were in line with expectations, as Fannie Mae reported $0.63 EPS and $7.28 billion in revenue, both roughly matching analyst forecasts. The company also posted a negative return on equity of 65.94%.

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 $7.67 and traded as low as $5.80. Fannie Mae shares last traded at $5.86, with a volume of 6,156,574 shares trading hands.

Analysts Set New Price Targets

FNMA has been the topic of a number of research analyst reports. BTIG Research downgraded shares of Fannie Mae from a "buy" rating to a "neutral" rating in a report on Tuesday, June 16th. Keefe, Bruyette & Woods reduced their price target on shares of Fannie Mae from $10.00 to $8.50 and set an "underperform" rating for the company in a research report on Monday, April 20th. Zacks Research raised Fannie Mae from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 21st. Mizuho started coverage on Fannie Mae in a report on Monday, May 4th. They issued an "outperform" rating and a $10.00 price target on the stock. Finally, Wedbush downgraded Fannie Mae from an "outperform" rating to a "neutral" rating and set a $8.00 price objective for the company. in a research note on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Fannie Mae currently has a consensus rating of "Hold" and an average price target of $12.75.

Fannie Mae Stock Down 5.0%

The company has a market capitalization of $6.79 billion, a price-to-earnings ratio of 586.59 and a beta of 1.62. The stock has a fifty day moving average price of $6.98 and a two-hundred day moving average price of $7.67.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The financial services provider reported $0.63 EPS for the quarter, meeting analysts' consensus estimates of $0.63. The business had revenue of $7.28 billion for the quarter, compared to analyst estimates of $7.25 billion. Fannie Mae had a negative return on equity of 65.94% and a net margin of 4.53%. As a group, research analysts forecast that Fannie Mae will post 2.57 earnings per share for the current fiscal year.

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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