Fannie Mae (OTCMKTS:FNMA) Stock Price Down 5.2% – Time to Sell?

Fannie Mae (OTCMKTS:FNMA)’s stock price fell 5.2% during trading on Monday . The stock traded as low as $5.75 and last traded at $5.78. 2,890,892 shares changed hands during trading, a decline of 47% from the average session volume of 5,426,936 shares. The stock had previously closed at $6.10.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on FNMA shares. Zacks Research cut Fannie Mae from a “hold” rating to a “strong sell” rating in a report on Wednesday, February 11th. B. Riley Financial reissued a “neutral” rating on shares of Fannie Mae in a research report on Thursday, February 12th. BTIG Research started coverage on Fannie Mae in a research note on Monday, January 26th. They issued a “buy” rating and a $20.00 price target for the company. Finally, Wedbush began coverage on Fannie Mae in a research report on Tuesday, November 25th. They set an “outperform” rating and a $11.50 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $14.30.

Fannie Mae Stock Performance

The company has a market capitalization of $6.74 billion, a P/E ratio of 2.50 and a beta of 1.78. The stock’s fifty day moving average price is $8.27 and its 200-day moving average price is $10.33.

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

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.