Fannie Mae (OTCMKTS:FNMA) Stock Moved Down to Hold by Mizuho

Mizuho lowered shares of Fannie Mae (OTCMKTS:FNMA) from a strong-buy rating to a hold rating in a research report sent to investors on Monday, Marketbeat Ratings reports. They currently have $5.00 price target on the financial services provider’s stock.

Several other brokerages have also recently commented on FNMA. BTIG Research cut shares of Fannie Mae from a “buy” rating to a “neutral” rating in a report on Tuesday, June 16th. 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 research report on Monday, September 28th. B. Riley Financial cut their price target on shares of Fannie Mae from $8.00 to $7.00 and set a “neutral” rating on the stock in a report on Thursday, July 30th. Finally, Wedbush restated a “neutral” rating and issued a $8.00 price target on shares of Fannie Mae in a research report on Thursday, July 30th. Five analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus price target of $8.70.

Fannie Mae Stock Down 14.2%

Shares of OTCMKTS FNMA opened at $3.47 on Monday. Fannie Mae has a 12 month low of $3.24 and a 12 month high of $12.87. The company has a market cap of $4.02 billion, a price-to-earnings ratio of 86.77 and a beta of 1.68. The business has a fifty day simple moving average of $5.43 and a 200-day simple moving average of $6.35.

Fannie Mae (OTCMKTS:FNMA) last released its quarterly 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. The business had revenue of $7.57 billion during the quarter, compared to analyst estimates of $7.32 billion. Fannie Mae had a negative return on equity of 76.66% and a net margin of 4.59%. As a group, sell-side analysts expect that Fannie Mae will post 2.63 EPS for the current fiscal year.

Institutional Investors Weigh In On Fannie Mae

A hedge fund recently bought a new stake in Fannie Mae stock. Hennessy Advisors Inc. acquired a new position in shares of Fannie Mae (OTCMKTS:FNMA) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm 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 News Summary

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

• Positive Sentiment: Potential loan-sale activity could support Fannie Mae’s earnings and improve investor sentiment if it generates meaningful gains or reduces balance-sheet risk. Fannie Mae Stock May Trade At A Premium On Loan Sale News
• Neutral Sentiment: A proposed shift away from FICO toward a competing credit-scoring model could lower mortgage costs and expand access to credit, but critics warn that weaker underwriting standards could increase credit risk for Fannie Mae and Freddie Mac. A Credit-Score Shift at Fannie and Freddie Is Shaking Up the Mortgage Market
• Negative Sentiment: Mizuho downgraded FNMA from Strong Buy to Hold and reduced its price target, citing higher mortgage rates, delays surrounding a potential release from conservatorship, and other privatization obstacles. The firm also cut its view on Freddie Mac, signaling weaker near-term sector sentiment. Fannie Mae Cut to Hold at Mizuho Fannie Mae, Freddie Mac Stocks Sink on Fading Privatization Hopes
• Negative Sentiment: Investor Michael Burry reportedly shifted from Fannie Mae and Freddie Mac common shares into preferred stock, warning that Treasury-related recapitalization could dilute common shareholders by at least 90% or potentially leave the common stock worthless. That highlights the central risk facing FNMA investors even if the companies are eventually released from government control. Why Michael Burry Is Swapping Fannie Mae Common Stock For Preferred Shares

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.