Fannie Mae (OTCMKTS:FNMA) Sets New 1-Year Low - Time to Sell?

Key Points

• Fannie Mae shares hit a new 52-week low, falling to $3.24 before last trading at $3.47, down 14.2% from the previous close amid heavy volume.
• Analyst sentiment is cautious: five analysts rate the stock Hold and one rates it Sell, resulting in a consensus “Reduce” rating. Price targets have been lowered, including Keefe, Bruyette & Woods’ cut to $3.50.
• The company beat quarterly earnings and revenue estimates, reporting $0.68 in EPS and $7.57 billion in revenue, but profitability metrics remained weak, including a 4.59% net margin and negative 76.66% return on equity.

Shares of Fannie Mae (OTCMKTS:FNMA - Get Free Report) hit a new 52-week low on Tuesday. The stock traded as low as $3.24 and last traded at $3.47, with a volume of 17,547,468 shares trading hands. The stock had previously closed at $4.0435.

Analysts Set New Price Targets

FNMA has been the topic of a number of research analyst reports. Mizuho set a $5.00 target price on Fannie Mae and gave the stock a "neutral" rating in a report on Monday. B. Riley Financial cut their price target on shares of Fannie Mae from $8.00 to $7.00 and set a "neutral" rating for the company in a report on Thursday, July 30th. Keefe, Bruyette & Woods reduced their price objective on shares of Fannie Mae from $6.25 to $3.50 and set an "underperform" rating for the company in a research report on Monday, September 28th. BTIG Research lowered shares of Fannie Mae from a "buy" rating to a "neutral" rating in a research report on Tuesday, June 16th. Finally, Wedbush reaffirmed a "neutral" rating and issued a $8.00 price objective on shares of Fannie Mae in a research note on Thursday, July 30th. Five investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Fannie Mae has an average rating of "Reduce" and a consensus target price of $8.70.

Fannie Mae Stock Down 14.2%

The firm's 50-day moving average price is $5.43 and its two-hundred day moving average price is $6.35. The firm has a market capitalization of $4.02 billion, a PE ratio of 86.77 and a beta of 1.68.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last issued its quarterly 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. Fannie Mae had a net margin of 4.59% and a negative return on equity of 76.66%. The business had revenue of $7.57 billion during the quarter, compared to the consensus estimate of $7.32 billion. Equities research analysts forecast that Fannie Mae will post 2.63 EPS for the current year.

Institutional Trading of Fannie Mae

A hedge fund recently bought a new position in Fannie Mae stock. Hennessy Advisors Inc. bought a new stake in Fannie Mae (OTCMKTS:FNMA - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 30,000 shares of the financial services provider's stock, valued at approximately $195,000. Institutional investors own 0.02% of the company's stock.

Fannie Mae Company Profile

Fannie Mae, formally known as the Federal National Mortgage Association, is a government-sponsored enterprise that supports the U.S. housing finance system. It operates in the secondary mortgage market, purchasing eligible residential mortgage loans from approved lenders and providing liquidity that helps banks and other mortgage originators continue making loans to homebuyers and homeowners.

Fannie Mae primarily supports single-family and multifamily housing. It finances and securitizes qualifying mortgage loans into mortgage-backed securities and generally guarantees the timely payment of principal and interest to investors in those securities.

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