Fannie Mae (OTCMKTS:FNMA) Trading 5.8% Higher - Here's What Happened

Key Points

• Shares of Fannie Mae rose 5.8% in mid-day trading to about $7.59 (intraday high $7.74) on Tuesday, with volume of ~2.67 million shares, a 61% decline from average daily volume.
• Analysts are mixed but overall sentiment is a "Moderate Buy" with a consensus price target of $14, ranging from recent downgrades to $8.50 up to a $20 buy target from BTIG.
• Fundamentals show a recent quarterly EPS of $0.60 that missed estimates ($0.68), while the company has a market cap of $8.92B, a low P/E of 2.86 and a negative return on equity of -49.21%.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) shares rose 5.8% during mid-day trading on Tuesday . The stock traded as high as $7.74 and last traded at $7.5850. Approximately 2,668,077 shares were traded during trading, a decline of 61% from the average daily volume of 6,919,294 shares. The stock had previously closed at $7.17.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the company. Keefe, Bruyette & Woods decreased their price objective on Fannie Mae from $10.00 to $8.50 and set an "underperform" rating on the stock in a report on Monday, April 20th. Zacks Research raised shares of Fannie Mae from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 21st. B. Riley Financial restated a "neutral" rating on shares of Fannie Mae in a report on Thursday, February 12th. Finally, BTIG Research initiated coverage on Fannie Mae in a research note on Monday, January 26th. They set a "buy" rating and a $20.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $14.00.

Fannie Mae Stock Performance

The company's fifty day moving average is $6.84 and its two-hundred day moving average is $9.00. The firm has a market cap of $8.92 billion, a price-to-earnings ratio of 2.86 and a beta of 1.73.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last announced its quarterly earnings results 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). The company had revenue of $7.33 billion during the quarter, compared to analyst estimates of $7.33 billion. Fannie Mae had a net margin of 2.22% and a negative return on equity of 49.21%. As a group, analysts forecast that Fannie Mae will post 2.55 earnings per share for the current fiscal year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.