Fannie Mae (OTCMKTS:FNMA) Reaches New 1-Year Low After Analyst Downgrade

Fannie Mae (OTCMKTS:FNMA)’s stock price hit a new 52-week low during mid-day 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. The stock had previously closed at $4.0435.

FNMA has been the subject of several other research reports. BTIG Research downgraded Fannie Mae from a “buy” rating to a “neutral” rating in a report on Tuesday, June 16th. Wedbush reaffirmed a “neutral” rating and set a $8.00 target price on shares of Fannie Mae in a research report on Thursday, July 30th. Keefe, Bruyette & Woods cut their target price on Fannie Mae from $6.25 to $3.50 and set an “underperform” rating on the stock in a report on Monday, September 28th. Finally, B. Riley Financial cut their target price on Fannie Mae from $8.00 to $7.00 and set a “neutral” rating on the stock in a report on Thursday, July 30th. Five equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $8.70.

Institutional Investors Weigh In On Fannie Mae

A hedge fund recently bought a new stake in Fannie Mae stock. Ratan Capital Management LP 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 institutional investor 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 Stock Performance

The company has a market cap of $3.65 billion, a price-to-earnings ratio of 78.77 and a beta of 1.68. The stock’s fifty day moving average is $5.34 and its two-hundred day moving average is $6.32.

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

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.