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

Key Points

• Fannie Mae shares fell below their 200-day moving average, trading as low as $5.91 before last changing hands at $6.07 on elevated volume.
• Analyst sentiment is largely neutral: the consensus rating is “Hold”, with an average price target of $12.25, though several firms recently lowered targets or downgraded the stock.
• Fannie Mae exceeded quarterly expectations, reporting $0.68 in EPS versus $0.63 expected and $7.57 billion in revenue versus $7.32 billion forecast; analysts project $2.59 in full-year EPS.

Fannie Mae (OTCMKTS:FNMA - Get Free Report)'s stock price passed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $6.96 and traded as low as $5.91. Fannie Mae shares last traded at $6.07, with a volume of 3,568,089 shares.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on FNMA shares. BTIG Research cut shares of Fannie Mae from a "buy" rating to a "neutral" rating in a research report on Tuesday, June 16th. B. Riley Financial lowered their price objective on shares of Fannie Mae from $8.00 to $7.00 and set a "neutral" rating on the stock in a research note on Thursday, July 30th. Wedbush reiterated a "neutral" rating and issued a $8.00 target price on shares of Fannie Mae in a report on Thursday, July 30th. Keefe, Bruyette & Woods dropped their target price on shares of Fannie Mae from $10.00 to $8.50 and set an "underperform" rating on the stock in a report on Monday, April 20th. Finally, Zacks Research raised shares of Fannie Mae from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 21st. 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 company's stock. Based on data from MarketBeat, Fannie Mae presently has a consensus rating of "Hold" and an average target price of $12.25.

Fannie Mae Stock Up 0.3%

The business has a 50-day moving average price of $6.27 and a 200-day moving average price of $6.96. The company has a market capitalization of $7.03 billion, a price-to-earnings ratio of 151.79 and a beta of 1.66.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $0.68 earnings per share for the quarter, beating analysts' consensus estimates of $0.63 by $0.05. The business had revenue of $7.57 billion during the quarter, compared to analyst estimates of $7.32 billion. Fannie Mae had a negative return on equity of 76.66% and a net margin of 4.59%. As a group, sell-side analysts predict that Fannie Mae will post 2.59 EPS for the current year.

Fannie Mae Company Profile

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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