Fannie Mae (OTCMKTS:FNMA) Trading Up 12% – What’s Next?

Fannie Mae (OTCMKTS:FNMA)’s share price shot up 12% during trading on Wednesday . The stock traded as high as $6.93 and last traded at $6.90. 5,073,590 shares traded hands during mid-day trading, a decline of 17% from the average session volume of 6,123,639 shares. The stock had previously closed at $6.16.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Zacks Research upgraded Fannie Mae from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 21st. Keefe, Bruyette & Woods decreased their price target on Fannie Mae from $10.00 to $8.50 and set an “underperform” rating for the company in a report on Monday, April 20th. Mizuho began coverage on Fannie Mae in a research report on Monday, May 4th. They issued an “outperform” rating and a $10.00 price target for the company. BTIG Research cut Fannie Mae from a “buy” rating to a “neutral” rating in a research note on Tuesday, June 16th. Finally, Wedbush downgraded shares of Fannie Mae from an “outperform” rating to a “neutral” rating and set a $8.00 price objective on the stock. in a report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $12.75.

Fannie Mae Price Performance

The company has a market capitalization of $7.99 billion, a P/E ratio of 690.69 and a beta of 1.57. The firm has a fifty day moving average price of $7.26 and a 200-day moving average price of $8.04.

Fannie Mae (OTCMKTS:FNMA) last issued its quarterly earnings results on Wednesday, April 29th. The financial services provider reported $0.63 EPS for the quarter, hitting analysts’ consensus estimates of $0.63. Fannie Mae had a negative return on equity of 65.94% and a net margin of 4.53%.The business had revenue of $7.28 billion for the quarter, compared to analyst estimates of $7.25 billion. On average, research analysts forecast that Fannie Mae will post 2.57 EPS for the current year.

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.