Fannie Mae (OTCMKTS:FNMA) Shares Gap Up – Here’s Why

Fannie Mae (OTCMKTS:FNMA)’s share price gapped up prior to trading on Monday . The stock had previously closed at $4.86, but opened at $5.27. Fannie Mae shares last traded at $6.4060, with a volume of 8,827,879 shares.

Analysts Set New Price Targets

FNMA has been the topic of a number of analyst reports. BTIG Research began coverage on shares of Fannie Mae in a research report on Monday, January 26th. They set a “buy” rating and a $20.00 target price on the stock. Zacks Research cut shares of Fannie Mae from a “hold” rating to a “strong sell” rating in a research report on Wednesday, February 11th. Finally, B. Riley Financial reissued a “neutral” rating on shares of Fannie Mae in a research note on Thursday, February 12th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $14.30.

Fannie Mae Price Performance

The firm has a 50-day simple moving average of $7.22 and a 200 day simple moving average of $9.82. The stock has a market capitalization of $7.74 billion, a P/E ratio of 1.99 and a beta of 1.78.

Fannie Mae (OTCMKTS:FNMA) last posted its quarterly earnings results on Wednesday, February 11th. The financial services provider reported $0.60 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.08). The business had revenue of $7.33 billion for the quarter, compared to the consensus estimate of $7.33 billion. Fannie Mae had a negative return on equity of 49.21% and a net margin of 2.22%.

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.