Fannie Mae (OTCMKTS:FNMA) Trading 5.7% Higher - Here's Why

Key Points

• Fannie Mae shares rose 5.7% on Friday, trading as high as $6.47 after closing at $6.10 the prior session.
• Analyst sentiment is mixed: recent rating changes include upgrades and downgrades, but the current consensus remains Hold with a $12.75 price target.
• Last quarter’s results met expectations, with EPS of $0.63 matching estimates and revenue of $7.28 billion slightly ahead of forecasts.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) rose 5.7% on Friday . The stock traded as high as $6.47 and last traded at $6.45. 4,473,264 shares changed hands during mid-day trading, a decline of 25% from the average session volume of 5,969,593 shares. The stock had previously closed at $6.10.

Analyst Ratings Changes

Several brokerages have recently issued reports on FNMA. Mizuho began coverage on shares of Fannie Mae in a report on Monday, May 4th. They set an "outperform" rating and a $10.00 price target for the company. BTIG Research cut shares of Fannie Mae from a "buy" rating to a "neutral" rating in a report on Tuesday, June 16th. Zacks Research upgraded shares of Fannie Mae from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 21st. Keefe, Bruyette & Woods reduced their target price on shares of Fannie Mae from $10.00 to $8.50 and set an "underperform" rating for the company in a research note on Monday, April 20th. Finally, Wedbush cut shares of Fannie Mae from an "outperform" rating to a "neutral" rating and set a $8.00 target price for the company. in a research report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Fannie Mae currently has a consensus rating of "Hold" and a consensus price target of $12.75.

Fannie Mae Stock Performance

The firm has a 50 day simple moving average of $6.95 and a two-hundred day simple moving average of $7.64. The stock has a market cap of $7.58 billion, a P/E ratio of 655.01 and a beta of 1.62.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The financial services provider reported $0.63 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.63. The company had revenue of $7.28 billion during the quarter, compared to analysts' expectations of $7.25 billion. Fannie Mae had a negative return on equity of 65.94% and a net margin of 4.53%. As a group, equities research analysts predict that Fannie Mae will post 2.57 EPS 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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