Fannie Mae (OTCMKTS:FNMA) Stock Price Up 6.1% - Here's Why

Key Points

• Fannie Mae shares rose 6.1% to about $4.29 in mid-day trading, although volume was 92% below the stock’s average daily volume.
• Analyst sentiment remains cautious: the stock has an overall “Hold” rating, with recent downgrades and price-target reductions, including Keefe, Bruyette & Woods cutting its target to $3.50.
• Fannie Mae beat quarterly expectations, reporting $0.68 in EPS and $7.57 billion in revenue versus estimates of $0.63 and $7.32 billion, respectively; institutional ownership remains minimal at 0.02%.

Fannie Mae (OTCMKTS:FNMA - Get Free Report)'s stock price rose 6.1% during mid-day trading on Friday. The company traded as high as $4.30 and last traded at $4.2860. 390,263 shares were traded during mid-day trading, a decline of 92% from the average daily volume of 5,099,293 shares. The stock had previously closed at $4.04.

Analyst Ratings Changes

FNMA has been the subject of a number of research analyst reports. BTIG Research downgraded shares of Fannie Mae from a "buy" rating to a "neutral" rating in a research note on Tuesday, June 16th. Wedbush reissued a "neutral" rating and issued a $8.00 target price on shares of Fannie Mae in a research report on Thursday, July 30th. B. Riley Financial lowered their target price 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. Finally, Keefe, Bruyette & Woods lowered their target price on shares of Fannie Mae from $6.25 to $3.50 and set an "underperform" rating for the company in a report on Monday, September 28th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Fannie Mae currently has an average rating of "Hold" and an average price target of $9.70.

Fannie Mae Trading Up 2.5%

The firm has a market capitalization of $4.79 billion, a PE ratio of 103.53 and a beta of 1.68. The firm has a 50-day moving average of $5.51 and a two-hundred day moving average of $6.37.

Fannie Mae (OTCMKTS:FNMA - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $0.68 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.63 by $0.05. The firm had revenue of $7.57 billion during 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%. Equities research analysts expect that Fannie Mae will post 2.63 earnings per share for the current fiscal year.

Institutional Trading of 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) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & 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 owned by hedge funds and other institutional investors.

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 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.

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.