Fannie Mae (OTCMKTS:FNMA) Shares Cross Below 50-Day Moving Average – Here’s Why

Fannie Mae (OTCMKTS:FNMA) shares passed below its 50-day moving average during trading on Tuesday. The stock has a 50-day moving average of $4.62 and traded as low as $4.30. Fannie Mae shares last traded at $4.35, with a volume of 3,996,502 shares trading hands.

Analysts Set New Price Targets

FNMA has been the topic of a number of recent analyst reports. Mizuho downgraded shares of Fannie Mae from an “outperform” rating to a “neutral” rating and set a $5.00 price target on the stock. in a report on Monday, October 12th. Wedbush initiated coverage on shares of Fannie Mae in a report on Thursday, October 22nd. They set a “hold” rating and a $3.50 price objective for the company. B. Riley Financial lowered their price objective on shares of Fannie Mae from $7.00 to $4.50 and set a “neutral” rating on the stock in a research report on Thursday, October 29th. Finally, Keefe, Bruyette & Woods dropped their target price on shares of Fannie Mae from $6.25 to $3.50 and set an “underperform” rating on the stock in a report on Monday, September 28th. Five research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Fannie Mae has an average rating of “Reduce” and a consensus target price of $7.30.

Fannie Mae Trading Down 7.4%

The company’s 50 day moving average price is $4.62 and its two-hundred day moving average price is $6.30. The stock has a market cap of $5.04 billion, a P/E ratio of 19.77 and a beta of 1.72.

Fannie Mae (OTCMKTS:FNMA) last posted its quarterly earnings data on Wednesday, October 28th. The financial services provider reported $0.72 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.66 by $0.06. The company had revenue of $7.65 billion for the quarter, compared to the consensus estimate of $7.45 billion. Fannie Mae had a net margin of 5.16% and a negative return on equity of 88.54%. On average, sell-side analysts anticipate that Fannie Mae will post 2.71 earnings per share for the current year.

Institutional Inflows and Outflows

An institutional investor recently bought a new stake in Fannie Mae stock. Ratan Capital Management LP acquired a new stake in shares of Fannie Mae (OTCMKTS:FNMA) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund acquired 79,000 shares of the financial services provider’s stock, valued at approximately $514,000. Institutional investors own 0.02% of the company’s stock.

Fannie Mae Company Profile

Fannie Mae, formally the Federal National Mortgage Association, is a U.S. government-sponsored enterprise that supports the secondary mortgage market. Founded in 1938, the company generally does not make mortgage loans directly to borrowers. Instead, it purchases eligible mortgages from lenders, helping those lenders replenish funds for additional home loans. Fannie Mae also packages many of the mortgages it acquires into mortgage-backed securities and guarantees investors timely payment of principal and interest, subject to the terms of those securities.