Fannie Mae (OTCMKTS:FNMA) Stock Price Up 7.4% - Here's Why

Key Points

• Stock jumped 7.4% mid-day to about $8.93 (intraday high $8.95) on Wednesday, with roughly 3.09 million shares trading — about 50% below its average daily volume.
• Analyst coverage is mixed — Wedbush started coverage with an “outperform” and $11.50 target, while the consensus remains a "Hold" with a $12.88 price target.
• Fundamentals are uneven: Fannie Mae missed estimates last quarter (EPS $0.65 vs. $0.72 and revenue $7.31B vs. $7.72B), shows a negative ROE (-37.47%) but trades at a low P/E of 4.62 and has a market cap of about $10.65 billion.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) shares were up 7.4% during mid-day trading on Wednesday . The stock traded as high as $8.95 and last traded at $8.9250. Approximately 3,091,760 shares traded hands during mid-day trading, a decline of 50% from the average daily volume of 6,141,828 shares. The stock had previously closed at $8.31.

Analyst Upgrades and Downgrades

FNMA has been the subject of a number of recent research reports. B. Riley upgraded shares of Fannie Mae to a "hold" rating in a report on Wednesday, October 29th. Wedbush started coverage on shares of Fannie Mae in a research report on Tuesday, November 25th. They set an "outperform" rating and a $11.50 price target for the company. Finally, Zacks Research raised Fannie Mae from a "strong sell" rating to a "hold" rating in a research note on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Fannie Mae presently has an average rating of "Hold" and a consensus price target of $12.88.

Fannie Mae Stock Up 10.7%

The business has a fifty day moving average of $10.44 and a 200 day moving average of $10.80. The company has a market cap of $10.65 billion, a P/E ratio of 4.62 and a beta of 1.78.

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

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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