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

Key Points

• Fannie Mae shares fell below their 200-day moving average, reaching $5.98 before last trading at $6.09, compared with a 200-day average of $7.25.
• Analyst sentiment is mixed but leans neutral: the stock has a consensus “Hold” rating and a $12.75 target price, while several firms recently downgraded or cut their price targets.
• Fannie Mae’s latest quarterly results matched earnings expectations at $0.63 per share and slightly exceeded revenue estimates with $7.28 billion, though its valuation remains elevated with a price-to-earnings ratio above 600.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) passed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $7.25 and traded as low as $5.98. Fannie Mae shares last traded at $6.09, with a volume of 3,824,411 shares.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on FNMA shares. BTIG Research cut Fannie Mae from a "buy" rating to a "neutral" rating in a research report on Tuesday, June 16th. Wedbush lowered Fannie Mae from an "outperform" rating to a "neutral" rating and set a $8.00 target price on the stock. in a research report on Friday, May 1st. Zacks Research upgraded 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 research note on Monday, May 4th. They issued an "outperform" rating and a $10.00 price target for the company. Finally, Keefe, Bruyette & Woods lowered their price target on Fannie Mae from $10.00 to $8.50 and set an "underperform" rating for the company in a report on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $12.75.

Fannie Mae Stock Performance

The stock's 50 day simple moving average is $6.53 and its 200-day simple moving average is $7.25. The firm has a market cap of $7.05 billion, a price-to-earnings ratio of 609.61 and a beta of 1.62.

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, hitting the consensus estimate of $0.63. The business had revenue of $7.28 billion during the quarter, compared to the consensus estimate of $7.25 billion. Fannie Mae had a net margin of 4.53% and a negative return on equity of 65.94%. On average, analysts expect that Fannie Mae will post 2.57 EPS 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.