Fannie Mae (OTCMKTS:FNMA) Stock Price Up 7.4% – Here’s Why

Fannie Mae (OTCMKTS:FNMA) was up 7.4% during mid-day trading on Wednesday . The company traded as high as $8.95 and last traded at $8.9250. Approximately 3,091,760 shares changed hands during trading, a decline of 50% from the average daily volume of 6,141,828 shares. The stock had previously closed at $8.31.

Analysts Set New Price Targets

A number of equities analysts have weighed in on FNMA shares. Zacks Research raised shares of Fannie Mae from a “strong sell” rating to a “hold” rating in a research note on Monday, December 29th. Wedbush initiated coverage on Fannie Mae in a research note on Tuesday, November 25th. They issued an “outperform” rating and a $11.50 price target on the stock. Finally, B. Riley upgraded Fannie Mae to a “hold” rating in a research note on Wednesday, October 29th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $12.88.

Fannie Mae Stock Performance

The stock has a market capitalization of $10.65 billion, a P/E ratio of 4.62 and a beta of 1.78. The firm has a fifty day moving average price of $10.44 and a two-hundred day moving average price of $10.80.

Fannie Mae (OTCMKTS:FNMA) last posted its earnings results on Wednesday, October 29th. The financial services provider reported $0.65 earnings per share for the quarter, missing analysts’ consensus estimates of $0.72 by ($0.07). The firm had revenue of $7.31 billion during the quarter, compared to the consensus estimate of $7.72 billion. Fannie Mae had a net margin of 2.61% and a negative return on equity of 37.47%.

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.