Fannie Mae (OTCMKTS:FNMA) Trading Up 4.2% - Time to Buy?

Key Points

• Shares rose 4.2% to $8.70 on Friday but traded on light volume (390,798 vs. a 5.7M average) and remain below the 50‑day ($10.30) and 200‑day ($10.76) moving averages.
• Analyst consensus is a Moderate Buy with an average price target of $14.30, though individual ratings range from Strong Buy to Sell.
• Recent results showed a quarterly EPS miss ($0.65 vs. $0.72) and revenue shortfall, and the company reported a negative return on equity (‑37.47%) despite a 2.61% net margin.

Shares of Fannie Mae (OTCMKTS:FNMA - Get Free Report) shot up 4.2% during trading on Friday . The company traded as high as $8.70 and last traded at $8.70. 390,798 shares changed hands during trading, a decline of 93% from the average session volume of 5,709,247 shares. The stock had previously closed at $8.35.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the company. BTIG Research initiated coverage on Fannie Mae in a report on Monday. They issued a "buy" rating and a $20.00 price objective on the stock. Wedbush assumed coverage on shares of Fannie Mae in a research report on Tuesday, November 25th. They issued an "outperform" rating and a $11.50 target price on the stock. B. Riley upgraded shares of Fannie Mae to a "hold" rating in a research report on Wednesday, October 29th. Finally, Zacks Research raised Fannie Mae from a "strong sell" rating to a "hold" rating in a research note on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Fannie Mae currently has a consensus rating of "Moderate Buy" and an average price target of $14.30.

Fannie Mae Stock Performance

The company's fifty day moving average is $10.30 and its two-hundred day moving average is $10.76. The firm has a market cap of $9.67 billion, a price-to-earnings ratio of 4.61 and a beta of 1.78.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last released its quarterly earnings results on Wednesday, October 29th. The financial services provider reported $0.65 earnings per share for the quarter, missing analysts' consensus estimates 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 company had revenue of $7.31 billion for the quarter, compared to analyst estimates 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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