Fannie Mae (OTCMKTS:FNMA) Reaches New 52-Week Low Following Analyst Downgrade

Fannie Mae (OTCMKTS:FNMA) shares reached a new 52-week low during trading on Tuesday after Mizuho downgraded the stock from an outperform rating to a neutral rating. Mizuho now has a $5.00 price target on the stock. Fannie Mae traded as low as $3.24 and last traded at $3.47, with a volume of 17,547,468 shares changing hands. The stock had previously closed at $4.0435.

Other analysts also recently issued reports about the company. Keefe, Bruyette & Woods decreased their target price on Fannie Mae from $6.25 to $3.50 and set an “underperform” rating for the company in a research report on Monday, September 28th. Wedbush restated a “neutral” rating and issued a $8.00 price target on shares of Fannie Mae in a report on Thursday, July 30th. BTIG Research downgraded shares of Fannie Mae from a “buy” rating to a “neutral” rating in a research note on Tuesday, June 16th. Finally, B. Riley Financial decreased their price objective on shares of Fannie Mae from $8.00 to $7.00 and set a “neutral” rating for the company in a report on Thursday, July 30th. Five investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Fannie Mae currently has an average rating of “Reduce” and a consensus target price of $8.70.

Institutional Inflows and Outflows

A hedge fund recently bought a new position in Fannie Mae stock. Hennessy Advisors Inc. acquired a new position in Fannie Mae (OTCMKTS:FNMA) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 30,000 shares of the financial services provider’s stock, valued at approximately $195,000. Institutional investors own 0.02% of the company’s stock.

Fannie Mae Stock Performance

The firm has a fifty day simple moving average of $5.34 and a 200 day simple moving average of $6.32. The company has a market capitalization of $3.65 billion, a PE ratio of 78.77 and a beta of 1.68.

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

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 eligible residential mortgage loans from approved lenders and providing liquidity that helps banks and other mortgage originators continue making loans to homebuyers and homeowners.

Fannie Mae primarily supports single-family and multifamily housing. It finances and securitizes qualifying mortgage loans into mortgage-backed securities and generally guarantees the timely payment of principal and interest to investors in those securities.