Fannie Mae (OTCMKTS:FNMA) Shares Down 10.2% – Here’s What Happened

Fannie Mae (OTCMKTS:FNMA)’s stock price fell 10.2% on Wednesday . The stock traded as low as $6.27 and last traded at $6.33. 4,543,028 shares traded hands during mid-day trading, a decline of 28% from the average session volume of 6,274,860 shares. The stock had previously closed at $7.05.

Trending Headlines about Fannie Mae

Here are the key news stories impacting Fannie Mae this week:

• Negative Sentiment: Bill Pulte’s appointment as acting intelligence chief raised questions about his ability to focus on Fannie Mae and Freddie Mac, increasing uncertainty around future governance and reform efforts. MarketWatch article on Pulte and Fannie/Freddie IPO
• Negative Sentiment: Media coverage suggested the dual role could make a Fannie Mae and Freddie Mac IPO look less likely, pressuring the shares. WSJ live coverage article
• Neutral Sentiment: Some coverage focused on the unusual nature of the appointment and what it may mean for the mortgage firms, but did not add new operational details for Fannie Mae. HousingWire article

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on FNMA shares. Zacks Research upgraded Fannie Mae from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 21st. Wedbush cut Fannie Mae from an “outperform” rating to a “neutral” rating and set a $8.00 price target for the company. in a report on Friday, May 1st. B. Riley Financial reiterated a “neutral” rating on shares of Fannie Mae in a report on Thursday, February 12th. Mizuho began coverage on shares of Fannie Mae in a research report on Monday, May 4th. They set an “outperform” rating and a $10.00 price objective for the company. Finally, Keefe, Bruyette & Woods reduced their price objective on shares of Fannie Mae from $10.00 to $8.50 and set an “underperform” rating for the company in a research report on Monday, April 20th. Two analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $12.75.

Fannie Mae Price Performance

The company’s 50-day moving average is $7.24 and its two-hundred day moving average is $8.43. The firm has a market cap of $7.50 billion, a P/E ratio of 648.65 and a beta of 1.57.

Fannie Mae (OTCMKTS:FNMA) last posted its quarterly earnings data on Wednesday, April 29th. The financial services provider reported $0.63 earnings per share for the quarter, hitting the consensus estimate 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 analysts’ expectations of $7.25 billion. On average, analysts expect that Fannie Mae will post 2.53 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.