Fannie Mae (OTCMKTS:FNMA) Stock Price Down 7% – Here’s What Happened

Fannie Mae (OTCMKTS:FNMA) was down 7% on Tuesday . The stock traded as low as $8.07 and last traded at $8.0750. Approximately 4,137,882 shares traded hands during trading, a decline of 40% from the average daily volume of 6,868,710 shares. The stock had previously closed at $8.68.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on FNMA shares. Mizuho started coverage on Fannie Mae in a report on Monday. They set an “outperform” rating and a $10.00 price target on the stock. Wedbush cut Fannie Mae from an “outperform” rating to a “neutral” rating and set a $8.00 price target on the stock. in a report on Friday. Zacks Research raised Fannie Mae from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 21st. Keefe, Bruyette & Woods lowered their price target on Fannie Mae from $10.00 to $8.50 and set an “underperform” rating on the stock in a report on Monday, April 20th. Finally, B. Riley Financial reissued a “neutral” rating on shares of Fannie Mae in a report on Thursday, February 12th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $12.75.

Fannie Mae Stock Performance

The stock has a fifty day moving average of $6.83 and a 200 day moving average of $8.93. The company has a market capitalization of $9.33 billion, a P/E ratio of 806.81 and a beta of 1.66.

Fannie Mae (OTCMKTS:FNMA) last announced its 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 company had revenue of $7.28 billion for the quarter, compared to analysts’ expectations of $7.25 billion. Research analysts anticipate that Fannie Mae will post 2.53 EPS for the current fiscal year.

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.