Fannie Mae (OTCMKTS:FNMA) Stock Price Down 6.6% – Time to Sell?

Fannie Mae (OTCMKTS:FNMA) shares traded down 6.6% during mid-day trading on Wednesday . The stock traded as low as $5.97 and last traded at $6.04. 3,611,405 shares changed hands during trading, a decline of 33% from the average session volume of 5,350,641 shares. The stock had previously closed at $6.47.

Analyst Ratings Changes

A number of analysts have commented on the company. Wedbush assumed coverage on Fannie Mae in a research report on Tuesday, November 25th. They issued an “outperform” rating and a $11.50 price objective for the company. BTIG Research started 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. Zacks Research downgraded shares of Fannie Mae from a “hold” rating to a “strong sell” rating in a research note on Wednesday, February 11th. Finally, B. Riley Financial restated a “neutral” rating on shares of Fannie Mae in a research note on Thursday, February 12th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $14.30.

Fannie Mae Stock Performance

The firm has a market cap of $8.01 billion, a price-to-earnings ratio of 2.86 and a beta of 1.78. The business’s 50-day moving average is $8.80 and its 200-day moving average is $10.54.

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

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.