Fannie Mae (OTCMKTS:FNMA) Shares Down 7.1% – Time to Sell?

Fannie Mae (OTCMKTS:FNMA)’s stock price was down 7.1% on Thursday . The company traded as low as $6.50 and last traded at $6.58. Approximately 1,078,166 shares changed hands during trading, a decline of 85% from the average daily volume of 7,272,213 shares. The stock had previously closed at $7.08.

Analyst Ratings Changes

A number of research firms have weighed in on FNMA. B. Riley Financial reaffirmed a “neutral” rating on shares of Fannie Mae in a research report on Thursday, February 12th. Zacks Research downgraded Fannie Mae from a “hold” rating to a “strong sell” rating in a report on Wednesday, February 11th. Finally, BTIG Research began coverage on shares of Fannie Mae in a research report on Monday, January 26th. They issued a “buy” rating and a $20.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $14.30.

Fannie Mae Trading Down 4.3%

The business has a 50 day moving average of $7.13 and a 200-day moving average of $9.70. The stock has a market cap of $7.85 billion, a PE ratio of 2.98 and a beta of 1.73.

Fannie Mae (OTCMKTS:FNMA) last released its quarterly earnings results on Wednesday, February 11th. The financial services provider reported $0.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.68 by ($0.08). The firm had revenue of $7.33 billion for the quarter, compared to analyst estimates of $7.33 billion. Fannie Mae had a negative return on equity of 49.21% and a net margin of 2.22%.

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.