Fannie Mae (OTCMKTS:FNMA) Shares Gap Up – Here’s Why

Shares of Fannie Mae (OTCMKTS:FNMA) gapped up before the market opened on Monday . The stock had previously closed at $4.86, but opened at $5.27. Fannie Mae shares last traded at $6.4060, with a volume of 8,827,879 shares traded.

Analyst Ratings Changes

A number of analysts recently commented on the company. BTIG Research initiated coverage on Fannie Mae in a research report on Monday, January 26th. They issued a “buy” rating and a $20.00 target price for the company. B. Riley Financial reiterated a “neutral” rating on shares of Fannie Mae in a report on Thursday, February 12th. Finally, Zacks Research cut Fannie Mae from a “hold” rating to a “strong sell” rating in a research note on Wednesday, February 11th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $14.30.

Fannie Mae Stock Performance

The company has a market cap of $7.74 billion, a price-to-earnings ratio of 1.99 and a beta of 1.78. The stock’s fifty day moving average is $7.22 and its two-hundred day moving average is $9.82.

Fannie Mae (OTCMKTS:FNMA) last released its quarterly earnings results on Wednesday, February 11th. The financial services provider reported $0.60 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.08). The company had revenue of $7.33 billion for the quarter, compared to analyst estimates of $7.33 billion. Fannie Mae had a net margin of 2.22% and a negative return on equity of 49.21%.

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.