Fannie Mae (OTCMKTS:FNMA) Stock Price Up 5.4% – What’s Next?

Shares of Fannie Mae (OTCMKTS:FNMA) shot up 5.4% during trading on Wednesday. The company traded as high as $4.05 and last traded at $3.93. 1,055,912 shares traded hands during mid-day trading, a decline of 80% from the average session volume of 5,241,042 shares. The stock had previously closed at $3.73.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. B. Riley Financial decreased their target price on shares of Fannie Mae from $8.00 to $7.00 and set a “neutral” rating on the stock in a research note on Thursday, July 30th. Wedbush restated a “neutral” rating and issued a $8.00 price target on shares of Fannie Mae in a research report on Thursday, July 30th. Mizuho set a $5.00 price target on Fannie Mae and gave the company a “neutral” rating in a report on Monday, October 12th. Finally, Keefe, Bruyette & Woods reduced their price objective on Fannie Mae from $6.25 to $3.50 and set an “underperform” rating on the stock in a research report on Monday, September 28th. Five investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Reduce” and an average target price of $8.70.

Fannie Mae Price Performance

The stock has a market cap of $4.48 billion, a PE ratio of 96.65 and a beta of 1.68. The stock’s fifty day moving average is $5.14 and its 200-day moving average is $6.24.

Fannie Mae (OTCMKTS:FNMA) last issued its earnings results on Wednesday, July 29th. The financial services provider reported $0.68 EPS for the quarter, topping analysts’ consensus estimates of $0.63 by $0.05. The company had revenue of $7.57 billion for the quarter, compared to the consensus estimate of $7.32 billion. Fannie Mae had a net margin of 4.59% and a negative return on equity of 76.66%. On average, sell-side analysts expect that Fannie Mae will post 2.63 EPS for the current fiscal year.

Institutional Trading of Fannie Mae

A hedge fund recently bought a new position in Fannie Mae stock. Ratan Capital Management LP acquired a new stake in Fannie Mae (OTCMKTS:FNMA) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 79,000 shares of the financial services provider’s stock, valued at approximately $514,000. Hedge funds and other institutional investors own 0.02% of the company’s stock.

About Fannie Mae

Fannie Mae, formally known as the Federal National Mortgage Association, is a government-sponsored enterprise that supports the U.S. housing finance system. It operates in the secondary mortgage market, purchasing qualifying residential mortgage loans from approved lenders and helping provide liquidity so those lenders can continue offering mortgage financing to homebuyers and homeowners.

Fannie Mae finances its activities primarily by issuing debt and mortgage-backed securities. It also guarantees certain mortgage-backed securities, helping connect mortgage lenders with institutional investors.