Fannie Mae (OTCMKTS:FNMA) Stock Falls 23.2% – Should You Sell?

Fannie Mae (OTCMKTS:FNMA) shares fell 23.2% during trading on Wednesday. The stock traded as low as $4.10 and last traded at $4.27. 3,289,809 shares were traded during mid-day trading, a decline of 38% from the average daily volume of 5,336,530 shares. The stock had previously closed at $5.56.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on FNMA. Mizuho cut Fannie Mae from an “outperform” rating to a “neutral” rating and set a $5.00 price objective for the company. in a research note on Monday, October 12th. B. Riley Financial cut their target price on Fannie Mae from $7.00 to $4.50 and set a “neutral” rating on the stock in a research note on Thursday, October 29th. Wedbush started coverage on shares of Fannie Mae in a report on Thursday, October 22nd. They issued a “hold” rating and a $3.50 target price for the company. Finally, Keefe, Bruyette & Woods reduced 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. Five investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Reduce” and an average price target of $7.30.

Fannie Mae Trading Up 0.7%

The company has a 50-day moving average of $4.72 and a 200-day moving average of $6.37. The company has a market capitalization of $4.97 billion, a price-to-earnings ratio of 19.50 and a beta of 1.72.

Fannie Mae (OTCMKTS:FNMA) last released its quarterly earnings results on Wednesday, October 28th. The financial services provider reported $0.72 EPS for the quarter, beating analysts’ consensus estimates of $0.66 by $0.06. The company had revenue of $7.65 billion during the quarter, compared to analysts’ expectations of $7.45 billion. Fannie Mae had a negative return on equity of 88.54% and a net margin of 5.16%. On average, research analysts expect that Fannie Mae will post 2.71 EPS for the current year.

Hedge Funds Weigh In On Fannie Mae

An institutional investor recently bought a new stake in Fannie Mae stock. Hennessy Advisors Inc. bought a new position in Fannie Mae (OTCMKTS:FNMA) in the second quarter, according to its most recent filing with the SEC. The firm bought 30,000 shares of the financial services provider’s stock, valued at approximately $195,000. Hedge funds and other institutional investors own 0.02% of the company’s stock.

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 qualifying residential mortgage loans from approved lenders and helping provide liquidity so those lenders can continue offering mortgage financing to homebuyers and homeowners.

Fannie Mae finances its activities primarily by issuing debt and mortgage-backed securities. It also guarantees certain mortgage-backed securities, helping connect mortgage lenders with institutional investors.