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

Key Points

• Fannie Mae's shares fell below their 200-day moving average, trading as low as $10.57 versus the 200-day MA of $10.71, with last trade around $10.91 on ~3.55M shares — a commonly watched bearish technical signal.
• Analyst views are mixed: the consensus rating is Hold with a $12.88 average price target, but individual calls range from Deutsche Bank's $20 Buy to Zacks' Strong Sell.
• Recent fundamentals were weak: quarterly EPS of $0.65 missed the $0.72 estimate and revenue was $7.31B versus $7.72B expected, and the company shows a negative ROE (-37.47%) despite a low trailing PE of 5.84.

Fannie Mae (OTCMKTS:FNMA - Get Free Report)'s share price crossed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $10.71 and traded as low as $10.57. Fannie Mae shares last traded at $10.9080, with a volume of 3,549,988 shares traded.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. Deutsche Bank Aktiengesellschaft started coverage on Fannie Mae in a research report on Thursday, September 11th. They set a "buy" rating and a $20.00 target price on the stock. B. Riley upgraded Fannie Mae to a "hold" rating in a research report on Wednesday, October 29th. Wedbush assumed coverage on Fannie Mae in a report on Tuesday, November 25th. They issued an "outperform" rating and a $11.50 price objective on the stock. Keefe, Bruyette & Woods boosted their price objective on Fannie Mae from $4.00 to $10.00 and gave the company an "underperform" rating in a research report on Thursday, September 18th. Finally, Zacks Research downgraded Fannie Mae from a "hold" rating to a "strong sell" rating in a research note on Monday, November 3rd. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $12.88.

Fannie Mae Stock Performance

The company has a 50 day simple moving average of $10.74 and a 200 day simple moving average of $10.71. The company has a market capitalization of $12.63 billion, a PE ratio of 5.84 and a beta of 1.71.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last released its earnings results on Wednesday, October 29th. The financial services provider reported $0.65 earnings per share for the quarter, missing the consensus estimate of $0.72 by ($0.07). The firm had revenue of $7.31 billion during the quarter, compared to analysts' expectations of $7.72 billion. Fannie Mae had a net margin of 2.61% and a negative return on equity of 37.47%.

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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