Fannie Mae (OTCMKTS:FNMA) Stock Price Down 9.8% - Should You Sell?

Key Points

• Shares fell 9.8% on Friday to about $8.75, with roughly 4.36 million shares traded (about 7% below the average), after closing the prior session at $9.70.
• Analysts are mixed — MarketBeat shows an average rating of Hold and an average price target of $12.88, while individual firm targets and ratings range widely from $4.00/upside to $11.50/outperform and include Buy, Hold, and Sell calls.
• Fannie Mae missed quarterly expectations (EPS $0.65 vs. $0.72 expected; revenue $7.31B vs. $7.72B) and reported a negative return on equity of 37.47% despite a market cap of $10.14 billion and a P/E of 5.53.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) was down 9.8% during trading on Friday . The company traded as low as $8.72 and last traded at $8.7488. Approximately 4,358,652 shares traded hands during trading, a decline of 7% from the average daily volume of 4,684,039 shares. The stock had previously closed at $9.70.

Analyst Upgrades and Downgrades

FNMA has been the subject of a number of research reports. Wedbush assumed coverage on shares of Fannie Mae in a research note on Tuesday, November 25th. They issued an "outperform" rating and a $11.50 price objective for the company. B. Riley raised shares of Fannie Mae to a "hold" rating in a research note on Wednesday, October 29th. Keefe, Bruyette & Woods upped their price target on shares of 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 upgraded Fannie Mae from a "strong sell" rating to a "hold" rating in a report on Monday, December 29th. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Fannie Mae has an average rating of "Hold" and an average price target of $12.88.

Fannie Mae Price Performance

The company has a market capitalization of $10.14 billion, a P/E ratio of 5.53 and a beta of 1.78. The company has a 50 day moving average of $10.58 and a 200-day moving average of $10.80.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last released its quarterly earnings data 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). Fannie Mae had a negative return on equity of 37.47% and a net margin of 2.61%.The business had revenue of $7.31 billion during the quarter, compared to analysts' expectations of $7.72 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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