Fannie Mae (OTCMKTS:FNMA) Stock Price Up 13.3% – Should You Buy?

Fannie Mae (OTCMKTS:FNMA)’s stock price shot up 13.3% during mid-day trading on Thursday. The stock traded as high as $3.63 and last traded at $3.57. 7,533,509 shares were traded during trading, an increase of 45% from the average session volume of 5,186,478 shares. The stock had previously closed at $3.15.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the stock. Wedbush reissued a “neutral” rating and issued a $8.00 price objective on shares of Fannie Mae in a research note on Thursday, July 30th. Keefe, Bruyette & Woods dropped their target price on shares of Fannie Mae from $6.25 to $3.50 and set an “underperform” rating for the company in a report on Monday, September 28th. B. Riley Financial cut their target price on shares of Fannie Mae from $8.00 to $7.00 and set a “neutral” rating for the company in a research report on Thursday, July 30th. Finally, Mizuho set a $5.00 target price on shares of Fannie Mae and gave the stock a “neutral” rating in a research report on Monday, October 12th. Five investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Fannie Mae presently has a consensus rating of “Reduce” and an average target price of $8.70.

Fannie Mae Trading Up 1.1%

The business has a 50 day moving average of $5.24 and a 200-day moving average of $6.30. The stock has a market cap of $4.28 billion, a PE ratio of 92.52 and a beta of 1.68.

Fannie Mae (OTCMKTS:FNMA) last released its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $0.68 earnings per share for the quarter, topping the consensus estimate of $0.63 by $0.05. Fannie Mae had a negative return on equity of 76.66% and a net margin of 4.59%. The company had revenue of $7.57 billion during the quarter, compared to the consensus estimate of $7.32 billion. On average, equities research analysts anticipate that Fannie Mae will post 2.63 EPS for the current fiscal year.

Institutional Trading of Fannie Mae

A hedge fund recently bought a new stake in Fannie Mae stock. Ratan Capital Management LP acquired a new position in shares of Fannie Mae (OTCMKTS:FNMA) in the second quarter, according to the company in its most recent filing with the SEC. The firm acquired 79,000 shares of the financial services provider’s stock, valued at approximately $514,000. 0.02% of the stock is currently owned by institutional investors.

About Fannie Mae

Fannie Mae, formally known as the Federal National Mortgage Association, is a government-sponsored enterprise that supports the U.S. housing finance system. It operates in the secondary mortgage market, purchasing eligible residential mortgage loans from approved lenders and providing liquidity that helps banks and other mortgage originators continue making loans to homebuyers and homeowners.

Fannie Mae primarily supports single-family and multifamily housing. It finances and securitizes qualifying mortgage loans into mortgage-backed securities and generally guarantees the timely payment of principal and interest to investors in those securities.