Fannie Mae (OTCMKTS:FNMA) Stock Price Down 7% - Here's What Happened

Key Points

• Fannie Mae stock fell about 7% on Tuesday to around $8.075, trading as low as $8.07 on roughly 4.14 million shares—about 40% below its average daily volume.
• Analysts are mixed with a consensus rating of "Hold" and an average price target of $12.75; recent notes include Mizuho (Outperform, $10) and BTIG (Buy, $20) while Wedbush cut its rating to Neutral ($8).
• The firm reported quarterly EPS of $0.63 and revenue of $7.28 billion, meeting estimates, but shows a negative return on equity (-65.94%) and an extremely high trailing P/E (~807) with a market cap of $9.33 billion.

Fannie Mae (OTCMKTS:FNMA - Get Free Report)'s share price was down 7% on Tuesday . The stock traded as low as $8.07 and last traded at $8.0750. Approximately 4,137,882 shares changed hands during mid-day trading, a decline of 40% from the average daily volume of 6,868,710 shares. The stock had previously closed at $8.68.

Wall Street Analysts Forecast Growth

FNMA has been the topic of several recent analyst reports. Mizuho initiated coverage on Fannie Mae in a research note on Monday. They set an "outperform" rating and a $10.00 target price on the stock. BTIG Research initiated coverage on Fannie Mae in a research note on Monday, January 26th. They set a "buy" rating and a $20.00 target price on the stock. Wedbush downgraded Fannie Mae from an "outperform" rating to a "neutral" rating and set a $8.00 target price on the stock. in a research note on Friday. B. Riley Financial reiterated a "neutral" rating on shares of Fannie Mae in a research note on Thursday, February 12th. Finally, Zacks Research upgraded Fannie Mae from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 21st. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Fannie Mae presently has a consensus rating of "Hold" and an average price target of $12.75.

Fannie Mae Trading Down 7.1%

The firm has a 50 day simple moving average of $6.83 and a 200 day simple moving average of $8.93. The firm has a market capitalization of $9.33 billion, a PE ratio of 806.81 and a beta of 1.66.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last issued its earnings results on Wednesday, April 29th. The financial services provider reported $0.63 EPS for the quarter, meeting the consensus estimate of $0.63. The business had revenue of $7.28 billion for the quarter, compared to the consensus estimate of $7.25 billion. Fannie Mae had a negative return on equity of 65.94% and a net margin of 4.53%. Research analysts forecast that Fannie Mae will post 2.53 earnings per share for the current 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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