Fannie Mae (OTCMKTS:FNMA) Stock Price Down 6.6% - Time to Sell?

Key Points

• Fannie Mae shares fell 6.6% intraday to $6.04 (low $5.97) on Wednesday, with 3.61 million shares traded—about 33% below the average session volume—after closing at $6.47 previously.
• The company missed quarterly EPS ($0.60 vs. $0.68 est.), reported revenue in line with expectations ($7.33B), and showed a negative return on equity of 49.21% despite a 2.22% net margin.
• Analyst sentiment is mixed (one Strong Buy, two Buy, one Hold, two Sells), resulting in an average rating of "Hold" and an average price target of $14.30, with individual targets ranging roughly from $11.50 to $20.00.

Fannie Mae (OTCMKTS:FNMA - Get Free Report)'s share price fell 6.6% during mid-day trading on Wednesday . The stock traded as low as $5.97 and last traded at $6.04. 3,611,405 shares changed hands during mid-day trading, a decline of 33% from the average session volume of 5,350,641 shares. The stock had previously closed at $6.47.

Wall Street Analyst Weigh In

FNMA has been the subject of several recent research reports. B. Riley Financial restated a "neutral" rating on shares of Fannie Mae in a research report on Thursday, February 12th. BTIG Research began coverage on Fannie Mae in a research report on Monday, January 26th. They issued a "buy" rating and a $20.00 price target on the stock. Wedbush began coverage on shares of Fannie Mae in a research report on Tuesday, November 25th. They set an "outperform" rating and a $11.50 target price for the company. Finally, Zacks Research lowered shares of Fannie Mae from a "hold" rating to a "strong sell" rating in a report on Wednesday, February 11th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Fannie Mae currently has an average rating of "Hold" and an average target price of $14.30.

Fannie Mae Trading Up 5.7%

The company's 50-day simple moving average is $8.96 and its 200 day simple moving average is $10.59. The stock has a market cap of $7.92 billion, a P/E ratio of 2.90 and a beta of 1.78.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The financial services provider reported $0.60 earnings per share for the quarter, missing the consensus estimate of $0.68 by ($0.08). Fannie Mae had a negative return on equity of 49.21% and a net margin of 2.22%.The business had revenue of $7.33 billion during the quarter, compared to analysts' expectations of $7.33 billion.

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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