Fannie Mae (OTCMKTS:FNMA) Stock Price Down 7.4% – Here’s Why

Fannie Mae (OTCMKTS:FNMA)’s share price fell 7.4% on Tuesday . The company traded as low as $5.06 and last traded at $5.14. Approximately 3,144,604 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 5,128,529 shares. The stock had previously closed at $5.55.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on FNMA shares. BTIG Research downgraded shares of Fannie Mae from a “buy” rating to a “neutral” rating in a research report on Tuesday, June 16th. B. Riley Financial cut their price target on Fannie Mae from $8.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday, July 30th. Finally, Wedbush reissued a “neutral” rating and set a $8.00 price objective on shares of Fannie Mae in a report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $10.70.

Fannie Mae Trading Down 9.0%

The stock has a market capitalization of $5.85 billion, a PE ratio of 126.28 and a beta of 1.70. The stock’s fifty day simple moving average is $6.06 and its 200-day simple moving average is $6.58.

Fannie Mae (OTCMKTS:FNMA) last announced its earnings results on Wednesday, July 29th. The financial services provider reported $0.68 EPS for the quarter, beating the consensus estimate of $0.63 by $0.05. Fannie Mae had a net margin of 4.59% and a negative return on equity of 76.66%. The company had revenue of $7.57 billion during the quarter, compared to the consensus estimate of $7.32 billion. As a group, analysts anticipate that Fannie Mae will post 2.63 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Fannie Mae

A hedge fund recently bought a new stake in Fannie Mae stock. Hennessy Advisors Inc. bought a new position in Fannie Mae (OTCMKTS:FNMA) during the second quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 30,000 shares of the financial services provider’s stock, valued at approximately $195,000. 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 liquidity and stability in the U.S. housing finance system. The company does not generally lend directly to homebuyers. Instead, it purchases qualifying residential mortgages from approved lenders, providing those institutions with funds to originate additional loans.

Fannie Mae finances its activities primarily by issuing debt and mortgage-backed securities. It also guarantees the timely payment of principal and interest on many mortgage-backed securities backed by the loans it purchases.