Fannie Mae (OTCMKTS:FNMA) Stock Falls 8.6% Following Analyst Downgrade

Fannie Mae (OTCMKTS:FNMA)’s share price fell 8.6% on Monday after Keefe, Bruyette & Woods lowered their price target on the stock from $6.25 to $3.50. Keefe, Bruyette & Woods currently has an underperform rating on the stock. Fannie Mae traded as low as $4.27 and last traded at $4.27. 4,677,337 shares were traded during trading, a decline of 9% from the average daily volume of 5,114,095 shares. The stock had previously closed at $4.67.

FNMA has been the subject of a number of other reports. B. Riley Financial cut their price target on Fannie Mae from $8.00 to $7.00 and set a “neutral” rating for the company in a report on Thursday, July 30th. BTIG Research lowered shares of Fannie Mae from a “buy” rating to a “neutral” rating in a research report on Tuesday, June 16th. Finally, Wedbush reiterated a “neutral” rating and set a $8.00 target price on shares of Fannie Mae in a research note on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Fannie Mae has a consensus rating of “Hold” and a consensus target price of $9.70.

Institutional Trading of Fannie Mae

An institutional investor recently bought a new stake in Fannie Mae stock. Hennessy Advisors Inc. bought a new position in shares of Fannie Mae (OTCMKTS:FNMA) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 30,000 shares of the financial services provider’s stock, valued at approximately $195,000. Institutional investors own 0.02% of the company’s stock.

Fannie Mae Price Performance

The company has a market capitalization of $4.95 billion, a price-to-earnings ratio of 106.78 and a beta of 1.70. The stock has a 50 day moving average price of $5.86 and a two-hundred day moving average price of $6.46.

Fannie Mae (OTCMKTS:FNMA) last posted its quarterly earnings data 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 net margin of 4.59% and a negative return on equity of 76.66%. The firm had revenue of $7.57 billion during the quarter, compared to analysts’ expectations of $7.32 billion. Sell-side analysts forecast that Fannie Mae will post 2.63 EPS for the current fiscal year.

About Fannie Mae

Fannie Mae, formally known as the Federal National Mortgage Association, is a government-sponsored enterprise that supports liquidity and stability in the U.S. housing finance system. The company does not generally lend directly to homebuyers. Instead, it purchases qualifying residential mortgages from approved lenders, providing those institutions with funds to originate additional loans.

Fannie Mae finances its activities primarily by issuing debt and mortgage-backed securities. It also guarantees the timely payment of principal and interest on many mortgage-backed securities backed by the loans it purchases.