Fannie Mae (OTCMKTS:FNMA) Shares Pass Below 200 Day Moving Average - Here's What Happened

Key Points

• Fannie Mae shares fell below their 200-day moving average of $6.72, trading as low as $6.09 before closing at $6.12 on volume of approximately 1.33 million shares.
• Analyst sentiment is mixed but leans neutral: the consensus rating is “Hold”, with an average price target of $12.25. Recent actions included B. Riley cutting its target to $7 and BTIG downgrading the stock to neutral.
• Fannie Mae exceeded quarterly expectations, reporting $0.68 in EPS versus the $0.63 estimate and $7.57 billion in revenue versus $7.32 billion expected, though profitability metrics remained weak with a negative 76.66% return on equity.

Fannie Mae (OTCMKTS:FNMA - Get Free Report)'s share price passed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $6.72 and traded as low as $6.09. Fannie Mae shares last traded at $6.12, with a volume of 1,326,331 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the stock. B. Riley Financial decreased their target price on shares of Fannie Mae from $8.00 to $7.00 and set a "neutral" rating for the company in a research note on Thursday, July 30th. BTIG Research downgraded shares of Fannie Mae from a "buy" rating to a "neutral" rating in a research note on Tuesday, June 16th. Mizuho started coverage on shares of Fannie Mae in a research note on Monday, May 4th. They issued an "outperform" rating and a $10.00 price target on the stock. Finally, Wedbush reiterated a "neutral" rating and set a $8.00 price objective on shares of Fannie Mae in a report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Fannie Mae currently has a consensus rating of "Hold" and an average target price of $12.25.

Fannie Mae Stock Performance

The firm has a market cap of $7.09 billion, a P/E ratio of 153.04 and a beta of 1.66. The company has a 50 day moving average of $6.19 and a 200 day moving average of $6.72.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $0.68 EPS for the quarter, topping analysts' consensus estimates of $0.63 by $0.05. The firm had revenue of $7.57 billion for the quarter, compared to the consensus estimate of $7.32 billion. Fannie Mae had a negative return on equity of 76.66% and a net margin of 4.59%. As a group, analysts expect that Fannie Mae will post 2.59 EPS for the current fiscal year.

Institutional Inflows and Outflows

A hedge fund recently bought a new stake in Fannie Mae stock. Ratan Capital Management LP acquired a new stake in Fannie Mae (OTCMKTS:FNMA - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund acquired 79,000 shares of the financial services provider's stock, valued at approximately $514,000. Institutional investors own 0.02% of the company's stock.

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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