Fannie Mae (OTCMKTS:FNMA) Shares Down 10.2% – Here’s What Happened

Shares of Fannie Mae (OTCMKTS:FNMA) dropped 10.2% during trading on Wednesday . The company traded as low as $6.27 and last traded at $6.33. Approximately 4,543,028 shares were traded during mid-day trading, a decline of 28% from the average daily volume of 6,274,860 shares. The stock had previously closed at $7.05.

Key Fannie Mae News

Here are the key news stories impacting Fannie Mae this week:

• Negative Sentiment: Bill Pulte’s appointment as acting intelligence chief raised questions about his ability to focus on Fannie Mae and Freddie Mac, increasing uncertainty around future governance and reform efforts. MarketWatch article on Pulte and Fannie/Freddie IPO
• Negative Sentiment: Media coverage suggested the dual role could make a Fannie Mae and Freddie Mac IPO look less likely, pressuring the shares. WSJ live coverage article
• Neutral Sentiment: Some coverage focused on the unusual nature of the appointment and what it may mean for the mortgage firms, but did not add new operational details for Fannie Mae. HousingWire article

Wall Street Analysts Forecast Growth

FNMA has been the subject of a number of research reports. B. Riley Financial reiterated a “neutral” rating on shares of Fannie Mae in a research note on Thursday, February 12th. Keefe, Bruyette & Woods dropped their price target on Fannie Mae from $10.00 to $8.50 and set an “underperform” rating for the company in a research note on Monday, April 20th. Zacks Research upgraded Fannie Mae from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 21st. Wedbush cut Fannie Mae from an “outperform” rating to a “neutral” rating and set a $8.00 price target for the company. in a research note on Friday, May 1st. Finally, Mizuho began coverage on Fannie Mae in a research note on Monday, May 4th. They issued an “outperform” rating and a $10.00 price target for the company. Two research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $12.75.

Fannie Mae Trading Down 8.1%

The company has a 50-day moving average price of $7.24 and a two-hundred day moving average price of $8.43. The stock has a market capitalization of $7.50 billion, a P/E ratio of 648.65 and a beta of 1.57.

Fannie Mae (OTCMKTS:FNMA) last issued its earnings results on Wednesday, April 29th. The financial services provider reported $0.63 EPS for the quarter, meeting analysts’ consensus estimates of $0.63. Fannie Mae had a negative return on equity of 65.94% and a net margin of 4.53%.The business had revenue of $7.28 billion during the quarter, compared to analyst estimates of $7.25 billion. Research analysts forecast that Fannie Mae will post 2.53 earnings per share for the current year.

About Fannie Mae

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.