Fannie Mae (OTCMKTS:FNMA) Shares Down 7.4% - Here's Why

Key Points

• Fannie Mae shares fell 7.4% to $5.14, with about 3.1 million shares traded—below the stock’s average volume.
• Analyst sentiment is largely cautious: Fannie Mae has an average “Hold” rating, while B. Riley cut its price target to $7 and BTIG downgraded the stock to “Neutral.”
• The company exceeded quarterly expectations with $0.68 in earnings per share and $7.57 billion in revenue, but reported a negative 76.66% return on equity and remains primarily institutionally owned by a very small percentage of investors.

Fannie Mae (OTCMKTS:FNMA - Get Free Report)'s share price traded down 7.4% on Tuesday . The company traded as low as $5.06 and last traded at $5.14. Approximately 3,144,604 shares traded hands during trading, a decline of 39% from the average session volume of 5,128,529 shares. The stock had previously closed at $5.55.

Analyst Ratings Changes

A number of research analysts have recently issued reports on FNMA shares. Wedbush reissued a "neutral" rating and issued a $8.00 price objective on shares of Fannie Mae in a research note on Thursday, July 30th. B. Riley Financial lowered their target price on Fannie Mae from $8.00 to $7.00 and set a "neutral" rating for the company in a report on Thursday, July 30th. Finally, BTIG Research lowered Fannie Mae from a "buy" rating to a "neutral" rating in a research note on Tuesday, June 16th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Fannie Mae presently has an average rating of "Hold" and a consensus price target of $10.70.

Fannie Mae Trading Down 9.0%

The company has a market cap of $5.85 billion, a P/E ratio of 126.28 and a beta of 1.70. The stock's 50-day moving average price is $6.06 and its 200-day moving average price is $6.58.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last issued its earnings results on Wednesday, July 29th. The financial services provider reported $0.68 EPS for the quarter, beating analysts' consensus estimates of $0.63 by $0.05. The business had revenue of $7.57 billion during the quarter, compared to analyst estimates of $7.32 billion. Fannie Mae had a negative return on equity of 76.66% and a net margin of 4.59%. On average, research analysts anticipate that Fannie Mae will post 2.63 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Fannie Mae

An institutional investor recently bought a new position in Fannie Mae stock. Hennessy Advisors Inc. purchased a new stake in Fannie Mae (OTCMKTS:FNMA - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 30,000 shares of the financial services provider's stock, valued at approximately $195,000. 0.02% of the stock is currently owned by institutional investors and hedge funds.

Fannie Mae Company Profile

Fannie Mae, formally known as the Federal National Mortgage Association, is a government-sponsored enterprise that supports liquidity and stability in the U.S. housing finance system. The company does not generally lend directly to homebuyers. Instead, it purchases qualifying residential mortgages from approved lenders, providing those institutions with funds to originate additional loans.

Fannie Mae finances its activities primarily by issuing debt and mortgage-backed securities. It also guarantees the timely payment of principal and interest on many mortgage-backed securities backed by the loans it purchases.

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.