Fannie Mae (OTCMKTS:FNMA) Shares Up 7.4% – Here’s What Happened

Fannie Mae (OTCMKTS:FNMA)’s share price traded up 7.4% on Wednesday . The company traded as high as $8.95 and last traded at $8.9250. 3,091,760 shares changed hands during mid-day trading, a decline of 50% from the average session volume of 6,141,828 shares. The stock had previously closed at $8.31.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on FNMA. Wedbush assumed coverage on Fannie Mae in a report on Tuesday, November 25th. They set an “outperform” rating and a $11.50 price objective on the stock. Zacks Research raised Fannie Mae from a “strong sell” rating to a “hold” rating in a research note on Monday, December 29th. Finally, B. Riley upgraded Fannie Mae to a “hold” rating in a report on Wednesday, October 29th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Fannie Mae presently has an average rating of “Hold” and an average price target of $12.88.

Fannie Mae Trading Down 0.7%

The business’s fifty day simple moving average is $10.43 and its 200 day simple moving average is $10.78. The stock has a market cap of $10.27 billion, a price-to-earnings ratio of 4.85 and a beta of 1.78.

Fannie Mae (OTCMKTS:FNMA) last announced its quarterly earnings results on Wednesday, October 29th. The financial services provider reported $0.65 EPS for the quarter, missing analysts’ consensus estimates of $0.72 by ($0.07). The company had revenue of $7.31 billion during the quarter, compared to the consensus estimate of $7.72 billion. Fannie Mae had a net margin of 2.61% and a negative return on equity of 37.47%.

Fannie Mae Company Profile

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.