Fannie Mae (OTCMKTS:FNMA) Trading Down 9.9% – Should You Sell?

Fannie Mae (OTCMKTS:FNMA) was down 9.9% during trading on Thursday . The company traded as low as $4.82 and last traded at $4.85. Approximately 4,729,335 shares were traded during trading, a decline of 25% from the average daily volume of 6,312,494 shares. The stock had previously closed at $5.38.

Trending Headlines about Fannie Mae

Here are the key news stories impacting Fannie Mae this week:

• Positive Sentiment: Fannie Mae will accept crypto‑backed mortgages via a new product structure that keeps the primary mortgage as a standard Fannie‑backed loan while a separate loan (backed by pledged crypto) funds the down payment. This could expand eligibility to crypto‑asset holders and create new origination and servicing volumes for Fannie/its sellers. CNBC coverage
• Positive Sentiment: Coinbase and Better Home & Finance will provide the token‑pledge and down‑payment loan mechanics; market reaction to the announcement has boosted sentiment toward partners (e.g., COIN). A credible fintech partner may accelerate adoption and provide distribution scale for the new product. Cointelegraph coverage
• Neutral Sentiment: Fannie/Freddie are active in the MBS market (placing large orders recently), reflecting continued portfolio operations that influence liquidity and spread management but are part of routine balance‑sheet activity rather than one‑off earnings drivers. MSN coverage
• Neutral Sentiment: Separately, industry licensing activity (buyer for a Fannie/Freddie license reported) is a sector development with limited direct near‑term impact on Fannie’s core financials but signals ongoing secondary‑market reorganization. TheRealDeal coverage
• Negative Sentiment: Regulatory, credit and reputational risks: using volatile crypto as collateral increases model, liquidity and compliance risk and could invite regulatory scrutiny or higher loss provisioning if pledged assets plunge. Investors may fear higher underwriting complexity and potential capital/credit headaches, which can pressure the stock despite the growth angle. WSJ coverage

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on FNMA shares. BTIG Research started coverage on shares of Fannie Mae in a research note on Monday, January 26th. They issued a “buy” rating and a $20.00 target price for the company. Zacks Research lowered shares of Fannie Mae from a “hold” rating to a “strong sell” rating in a research report on Wednesday, February 11th. Finally, B. Riley Financial reiterated a “neutral” rating on shares of Fannie Mae in a research report on Thursday, February 12th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $14.30.

Fannie Mae Stock Performance

The stock has a market cap of $5.79 billion, a price-to-earnings ratio of 2.25 and a beta of 1.78. The business’s 50 day moving average is $7.39 and its 200-day moving average is $9.98.

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

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.