Fannie Mae (OTCMKTS:FNMA) Shares Gap Down After Analyst Downgrade

Fannie Mae (OTCMKTS:FNMA) gapped down before the market opened on Monday after Wedbush downgraded the stock from an outperform rating to a neutral rating. The stock had previously closed at $8.15, but opened at $7.5150. Wedbush now has a $8.00 price target on the stock. Fannie Mae shares last traded at $8.95, with a volume of 1,738,897 shares traded.

A number of other brokerages have also issued reports on FNMA. Keefe, Bruyette & Woods cut their price target on shares of Fannie Mae from $10.00 to $8.50 and set an “underperform” rating on the stock in a research note on Monday, April 20th. BTIG Research assumed coverage on shares of Fannie Mae in a research note on Monday, January 26th. They set a “buy” rating and a $20.00 price target on the stock. Zacks Research upgraded shares of Fannie Mae from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 21st. Finally, B. Riley Financial restated a “neutral” rating on shares of Fannie Mae in a research note on Thursday, February 12th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $12.75.

Fannie Mae Trading Up 8.8%

The firm’s fifty day moving average price is $6.83 and its 200 day moving average price is $8.93. The firm has a market capitalization of $10.27 billion, a PE ratio of 887.89 and a beta of 1.66.

Fannie Mae (OTCMKTS:FNMA) last released its quarterly earnings data on Wednesday, April 29th. The financial services provider reported $0.63 EPS for the quarter, meeting the consensus estimate of $0.63. The business had revenue of $7.28 billion for the quarter, compared to the consensus estimate of $7.25 billion. Fannie Mae had a net margin of 4.53% and a negative return on equity of 65.94%. On average, analysts predict that Fannie Mae will post 2.53 earnings per share for the current year.

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.