Fannie Mae (OTCMKTS:FNMA) Shares Down 10.2% – Should You Sell?

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

Wall Street Analyst Weigh In

FNMA has been the topic of a number of research reports. B. Riley Financial restated a “neutral” rating on shares of Fannie Mae in a research note on Thursday, February 12th. Mizuho initiated coverage on Fannie Mae in a research note on Monday, May 4th. They set an “outperform” rating and a $10.00 price target on the stock. Wedbush downgraded Fannie Mae from an “outperform” rating to a “neutral” rating and set a $8.00 price target on the stock. in a research note on Friday, May 1st. Keefe, Bruyette & Woods dropped their price target on Fannie Mae from $10.00 to $8.50 and set an “underperform” rating on the stock in a research note on Monday, April 20th. Finally, Zacks Research upgraded Fannie Mae from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 21st. Two equities research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $12.75.

Fannie Mae Trading Up 6.3%

The firm has a 50 day simple moving average of $7.32 and a two-hundred day simple moving average of $8.38. The company has a market capitalization of $7.82 billion, a PE ratio of 675.68 and a beta of 1.57.

Fannie Mae (OTCMKTS:FNMA) last announced its earnings results on Wednesday, April 29th. The financial services provider reported $0.63 earnings per share for the quarter, meeting the consensus estimate of $0.63. Fannie Mae had a negative return on equity of 65.94% and a net margin of 4.53%.The company had revenue of $7.28 billion for the quarter, compared to the consensus estimate of $7.25 billion. Research analysts expect that Fannie Mae will post 2.57 earnings per share for the current fiscal year.

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.