Fannie Mae (OTCMKTS:FNMA) Shares Up 12% – Here’s What Happened

Fannie Mae (OTCMKTS:FNMA) shares were up 12% during trading on Wednesday . The stock traded as high as $6.93 and last traded at $6.90. Approximately 5,073,590 shares were traded during mid-day trading, a decline of 17% from the average session volume of 6,123,639 shares. The stock had previously closed at $6.16.

Analyst Upgrades and Downgrades

FNMA has been the topic of a number of recent research reports. Keefe, Bruyette & Woods lowered their target price on Fannie Mae from $10.00 to $8.50 and set an “underperform” rating on the stock in a report on Monday, April 20th. BTIG Research lowered shares of Fannie Mae from a “buy” rating to a “neutral” rating in a research report on Tuesday, June 16th. Mizuho assumed coverage on shares of Fannie Mae in a research note on Monday, May 4th. They issued an “outperform” rating and a $10.00 price objective on the stock. Wedbush downgraded shares of Fannie Mae from an “outperform” rating to a “neutral” rating and set a $8.00 price objective on the stock. in a report on Friday, May 1st. Finally, Zacks Research upgraded shares of Fannie Mae from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 21st. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $12.75.

Fannie Mae Stock Performance

The company has a market capitalization of $7.72 billion, a PE ratio of 667.67 and a beta of 1.57. The company’s fifty day moving average is $7.22 and its 200-day moving average is $7.98.

Fannie Mae (OTCMKTS:FNMA) last posted its quarterly earnings results on Wednesday, April 29th. The financial services provider reported $0.63 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.63. Fannie Mae had a net margin of 4.53% and a negative return on equity of 65.94%. The business had revenue of $7.28 billion during the quarter, compared to analyst estimates of $7.25 billion. On average, sell-side analysts expect that Fannie Mae will post 2.57 EPS for the current fiscal 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.