Fannie Mae (OTCMKTS:FNMA) Shares Break Below 50 Day Moving Average - What's Next?

Key Points

• Fannie Mae shares fell below their 50-day moving average of $4.62, trading as low as $4.30 and last at $4.35.
• Recent analyst actions were mostly cautious: five analysts rate the stock Hold and one rates it Sell; MarketBeat reports an average rating of “Reduce.”
• Fannie Mae beat quarterly estimates, reporting earnings of $0.72 per share versus $0.66 expected and revenue of $7.65 billion versus $7.45 billion expected.

Fannie Mae (OTCMKTS:FNMA - Get Free Report)'s stock price passed below its 50 day moving average during trading on Tuesday. The stock has a 50 day moving average of $4.62 and traded as low as $4.30. Fannie Mae shares last traded at $4.35, with a volume of 3,996,502 shares traded.

Analyst Ratings Changes

Several brokerages recently issued reports on FNMA. B. Riley Financial decreased their price target on shares of Fannie Mae from $7.00 to $4.50 and set a "neutral" rating for the company in a research note on Thursday, October 29th. Wedbush assumed coverage on shares of Fannie Mae in a research note on Thursday, October 22nd. They set a "hold" rating and a $3.50 price objective on the stock. Mizuho lowered shares of Fannie Mae from an "outperform" rating to a "neutral" rating and set a $5.00 price objective on the stock. in a research note on Monday, October 12th. Finally, Keefe, Bruyette & Woods cut their price objective on shares of Fannie Mae from $6.25 to $3.50 and set an "underperform" rating on the stock in a report on Monday, September 28th. Five investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Fannie Mae currently has an average rating of "Reduce" and a consensus price target of $7.30.

Fannie Mae Price Performance

The firm's 50 day moving average price is $4.62 and its 200-day moving average price is $6.30. The stock has a market cap of $5.04 billion, a P/E ratio of 19.77 and a beta of 1.72.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The financial services provider reported $0.72 earnings per share for the quarter, topping analysts' consensus estimates of $0.66 by $0.06. Fannie Mae had a net margin of 5.16% and a negative return on equity of 88.54%. The company had revenue of $7.65 billion during the quarter, compared to analyst estimates of $7.45 billion. On average, analysts expect that Fannie Mae will post 2.71 earnings per share for the current year.

Institutional Inflows and Outflows

A hedge fund recently bought a new position in Fannie Mae stock. Hennessy Advisors Inc. purchased a new stake in shares of Fannie Mae (OTCMKTS:FNMA - Free Report) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 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 the Federal National Mortgage Association, is a U.S. government-sponsored enterprise that supports the secondary mortgage market. Founded in 1938, the company generally does not make mortgage loans directly to borrowers. Instead, it purchases eligible mortgages from lenders, helping those lenders replenish funds for additional home loans. Fannie Mae also packages many of the mortgages it acquires into mortgage-backed securities and guarantees investors timely payment of principal and interest, subject to the terms of those securities.

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