Fannie Mae (OTCMKTS:FNMA) Stock Price Down 9.9% - Time to Sell?

Key Points

• 9.9% drop: Fannie Mae shares plunged about 9.9% mid‑day to $4.85 on Thursday, with roughly 4.73 million shares traded (about 25% below average) after a prior close of $5.38.
• Crypto‑backed mortgage rollout: Fannie will accept crypto‑pledged down payments via a structure that keeps the primary mortgage Fannie‑backed while a separate loan (partnering with Coinbase and Better Home & Finance) funds the down payment, which could boost originations but introduces regulatory, liquidity and underwriting risks.
• Mixed analyst view and weak fundamentals: Analysts are split despite a consensus price target of $14.30; Fannie recently missed EPS ($0.60 vs. $0.68), reported a negative ROE (~-49%), and the stock trades well below its 50‑ and 200‑day moving averages.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) dropped 9.9% during mid-day trading on Thursday . The stock traded as low as $4.82 and last traded at $4.85. Approximately 4,729,335 shares were traded during mid-day trading, a decline of 25% from the average daily volume of 6,312,494 shares. The stock had previously closed at $5.38.

Trending Headlines about Fannie Mae

Here are the key news stories impacting Fannie Mae this week:

• Positive Sentiment: Fannie Mae will accept crypto‑backed mortgages via a new product structure that keeps the primary mortgage as a standard Fannie‑backed loan while a separate loan (backed by pledged crypto) funds the down payment. This could expand eligibility to crypto‑asset holders and create new origination and servicing volumes for Fannie/its sellers. CNBC coverage
• Positive Sentiment: Coinbase and Better Home & Finance will provide the token‑pledge and down‑payment loan mechanics; market reaction to the announcement has boosted sentiment toward partners (e.g., COIN). A credible fintech partner may accelerate adoption and provide distribution scale for the new product. Cointelegraph coverage
• Neutral Sentiment: Fannie/Freddie are active in the MBS market (placing large orders recently), reflecting continued portfolio operations that influence liquidity and spread management but are part of routine balance‑sheet activity rather than one‑off earnings drivers. MSN coverage
• Neutral Sentiment: Separately, industry licensing activity (buyer for a Fannie/Freddie license reported) is a sector development with limited direct near‑term impact on Fannie’s core financials but signals ongoing secondary‑market reorganization. TheRealDeal coverage
• Negative Sentiment: Regulatory, credit and reputational risks: using volatile crypto as collateral increases model, liquidity and compliance risk and could invite regulatory scrutiny or higher loss provisioning if pledged assets plunge. Investors may fear higher underwriting complexity and potential capital/credit headaches, which can pressure the stock despite the growth angle. WSJ coverage

Analysts Set New Price Targets

FNMA has been the topic of several research analyst reports. B. Riley Financial reiterated a "neutral" rating on shares of Fannie Mae in a research note on Thursday, February 12th. Zacks Research lowered Fannie Mae from a "hold" rating to a "strong sell" rating in a research report on Wednesday, February 11th. Finally, BTIG Research assumed coverage on shares of Fannie Mae in a report on Monday, January 26th. They issued a "buy" rating and a $20.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $14.30.

Fannie Mae Trading Down 7.1%

The firm has a 50-day simple moving average of $7.39 and a two-hundred day simple moving average of $9.98. The company has a market capitalization of $5.79 billion, a price-to-earnings ratio of 2.25 and a beta of 1.78.

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

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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