Fannie Mae's (FNMA) "Neutral" Rating Reaffirmed at Wedbush

Key Points

• Wedbush reaffirmed its “Neutral” rating on Fannie Mae and maintained an $8.00 price target, implying 33.78% potential upside from the current price.
• Analyst sentiment remains mixed but centers on “Hold,” with a consensus price target of $12.75 based on ratings ranging from Strong Buy to Sell.
• Fannie Mae reported quarterly EPS of $0.68, beating the $0.63 estimate, while revenue of $7.57 billion exceeded the $7.32 billion consensus forecast.

Fannie Mae (OTCMKTS:FNMA - Get Free Report)'s stock had its "neutral" rating reissued by investment analysts at Wedbush in a research report issued on Thursday,Benzinga reports. They currently have a $8.00 price objective on the financial services provider's stock. Wedbush's target price points to a potential upside of 33.78% from the stock's current price.

FNMA has been the subject of a number of other reports. Zacks Research raised shares of Fannie Mae from a "strong sell" rating to a "hold" rating in a research report on Tuesday, April 21st. BTIG Research cut shares of Fannie Mae from a "buy" rating to a "neutral" rating in a research report on Tuesday, June 16th. Keefe, Bruyette & Woods cut their target price on Fannie Mae from $10.00 to $8.50 and set an "underperform" rating on the stock in a research note on Monday, April 20th. Finally, Mizuho assumed coverage on Fannie Mae in a report on Monday, May 4th. They issued an "outperform" rating and a $10.00 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $12.75.

Fannie Mae Price Performance

FNMA opened at $5.98 on Thursday. The company has a market capitalization of $6.93 billion, a price-to-earnings ratio of 598.60 and a beta of 1.62. The firm's fifty day moving average price is $6.49 and its two-hundred day moving average price is $7.18. Fannie Mae has a 1 year low of $3.60 and a 1 year high of $15.99.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last announced its earnings results on Wednesday, July 29th. The financial services provider reported $0.68 EPS for the quarter, beating the consensus estimate of $0.63 by $0.05. The company had revenue of $7.57 billion during the quarter, compared to the consensus estimate of $7.32 billion. Fannie Mae had a net margin of 4.53% and a negative return on equity of 65.94%. As a group, equities analysts anticipate 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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