Fannie Mae (OTCMKTS:FNMA) Stock Price Breaks Above 50-Day Moving Average - What's Next?

Key Points

• Fannie Mae shares rose above their 50-day moving average, reaching $5.25 before closing at $5.11 on heavy volume of approximately 6.94 million shares. The 50-day average is $4.81, while the 200-day average stands at $6.44.
• Analyst sentiment remains cautious: five analysts rate the stock a Hold and one rates it Sell, resulting in an overall “Reduce” rating. Recent firms lowered price targets, with targets ranging from $3.50 to $5.00 among the cited reports.
• Fannie Mae exceeded quarterly expectations, reporting $0.72 in EPS versus a $0.66 consensus estimate and $7.65 billion in revenue versus $7.45 billion expected. Institutional ownership remains minimal at 0.02%, despite Hennessy Advisors purchasing 30,000 shares.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) shares crossed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $4.81 and traded as high as $5.25. Fannie Mae shares last traded at $5.11, with a volume of 6,940,318 shares.

Wall Street Analysts Forecast Growth

FNMA has been the topic of several research reports. Wedbush initiated coverage on Fannie Mae in a report on Thursday, October 22nd. They issued a "hold" rating and a $3.50 target price on the stock. Mizuho downgraded Fannie Mae from an "outperform" rating to a "neutral" rating and set a $5.00 price target for the company. in a research note on Monday, October 12th. B. Riley Financial cut their price target on Fannie Mae from $7.00 to $4.50 and set a "neutral" rating for the company in a research note on Thursday. Finally, Keefe, Bruyette & Woods decreased their price objective on shares of Fannie Mae from $6.25 to $3.50 and set an "underperform" rating on the stock in a research report on Monday, September 28th. Five equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Reduce" and an average price target of $7.30.

Fannie Mae Price Performance

The firm's 50-day moving average price is $4.81 and its 200 day moving average price is $6.44. The firm has a market capitalization of $5.92 billion, a price-to-earnings ratio of 23.23 and a beta of 1.68.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The financial services provider reported $0.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.66 by $0.06. Fannie Mae had a negative return on equity of 82.92% and a net margin of 5.16%. The firm had revenue of $7.65 billion during the quarter, compared to the consensus estimate of $7.45 billion. On average, analysts predict that Fannie Mae will post 2.71 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Fannie Mae

An institutional investor recently bought a new stake in Fannie Mae stock. Hennessy Advisors Inc. acquired a new stake in Fannie Mae (OTCMKTS:FNMA - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 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.

About Fannie Mae

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 qualifying residential mortgage loans from approved lenders and helping provide liquidity so those lenders can continue offering mortgage financing to homebuyers and homeowners.

Fannie Mae finances its activities primarily by issuing debt and mortgage-backed securities. It also guarantees certain mortgage-backed securities, helping connect mortgage lenders with institutional investors.

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