Fannie Mae (OTCMKTS:FNMA) Shares Down 5.2% – Here’s What Happened

Fannie Mae (OTCMKTS:FNMA) shares fell 5.2% during trading on Monday . The stock traded as low as $5.75 and last traded at $5.78. 2,890,892 shares were traded during mid-day trading, a decline of 47% from the average session volume of 5,426,936 shares. The stock had previously closed at $6.10.

Analyst Ratings Changes

A number of research analysts have weighed in on the company. Zacks Research downgraded Fannie Mae from a “hold” rating to a “strong sell” rating in a report on Wednesday, February 11th. BTIG Research assumed coverage on Fannie Mae in a research note on Monday, January 26th. They issued a “buy” rating and a $20.00 price target on the stock. B. Riley Financial reiterated a “neutral” rating on shares of Fannie Mae in a report on Thursday, February 12th. Finally, Wedbush started coverage on Fannie Mae in a research report on Tuesday, November 25th. They set an “outperform” rating and a $11.50 price objective for the company. One 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 given a Sell rating to the company’s stock. According to MarketBeat.com, Fannie Mae has a consensus rating of “Hold” and an average target price of $14.30.

Fannie Mae Price Performance

The stock’s 50 day simple moving average is $8.05 and its two-hundred day simple moving average is $10.25. The firm has a market cap of $5.40 billion, a P/E ratio of 2.38 and a beta of 1.78.

Fannie Mae (OTCMKTS:FNMA) last issued its quarterly earnings results on Wednesday, February 11th. The financial services provider reported $0.60 EPS 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 during the quarter, compared to the consensus estimate 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.