Fannie Mae (OTCMKTS:FNMA) Stock Falls 3.9% – Here’s What Happened

Fannie Mae (OTCMKTS:FNMA)’s stock price traded down 3.9% during trading on Monday. The stock traded as low as $3.57 and last traded at $3.6140. 377,505 shares changed hands during trading, a decline of 93% from the average session volume of 5,226,897 shares. The stock had previously closed at $3.76.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on FNMA. Wedbush reiterated a “neutral” rating and issued a $8.00 price target on shares of Fannie Mae in a report on Thursday, July 30th. B. Riley Financial dropped their price target on shares of Fannie Mae from $8.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday, July 30th. Mizuho set a $5.00 price objective on Fannie Mae and gave the company a “neutral” rating in a report on Monday, October 12th. Finally, Keefe, Bruyette & Woods dropped their target price on shares of Fannie Mae from $6.25 to $3.50 and set an “underperform” rating on the stock in a report on Monday, September 28th. Five equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Reduce” and a consensus price target of $8.70.

Fannie Mae Price Performance

The stock has a market capitalization of $4.07 billion, a price-to-earnings ratio of 87.83 and a beta of 1.68. The company has a 50-day simple moving average of $5.24 and a two-hundred day simple moving average of $6.29.

Fannie Mae (OTCMKTS:FNMA) last announced its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $0.68 earnings per share (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. Research analysts anticipate that Fannie Mae will post 2.63 EPS for the current year.

Institutional Trading of Fannie Mae

An institutional investor recently bought a new stake in Fannie Mae stock. Ratan Capital Management LP bought a new stake in shares of Fannie Mae (OTCMKTS:FNMA) in the second quarter, according to its most recent Form 13F filing with the SEC. The fund bought 79,000 shares of the financial services provider’s stock, valued at approximately $514,000. Hedge funds and other institutional investors own 0.02% of the company’s stock.

Fannie Mae Company Profile

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.