Fannie Mae (OTCMKTS:FNMA) Shares Down 7.4% – Here’s What Happened

Fannie Mae (OTCMKTS:FNMA) shares were down 7.4% on Friday . The company traded as low as $6.66 and last traded at $6.74. Approximately 1,261,143 shares traded hands during trading, a decline of 79% from the average session volume of 6,133,572 shares. The stock had previously closed at $7.28.

Analysts Set New Price Targets

FNMA has been the subject of a number of recent analyst reports. Zacks Research raised shares of Fannie Mae from a “strong sell” rating to a “hold” rating in a research report on Tuesday, April 21st. Wedbush cut shares of Fannie Mae from an “outperform” rating to a “neutral” rating and set a $8.00 target price on the stock. in a research report on Friday, May 1st. Keefe, Bruyette & Woods reduced their target price on Fannie Mae from $10.00 to $8.50 and set an “underperform” rating for the company in a report on Monday, April 20th. BTIG Research lowered Fannie Mae from a “buy” rating to a “neutral” rating in a report on Tuesday, June 16th. Finally, Mizuho initiated coverage on Fannie Mae in a report on Monday, May 4th. They set an “outperform” rating and a $10.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Fannie Mae has an average rating of “Hold” and a consensus target price of $12.75.

Fannie Mae Stock Down 9.2%

The firm has a market cap of $7.65 billion, a P/E ratio of 661.66 and a beta of 1.57. The firm’s 50-day simple moving average is $7.22 and its 200 day simple moving average is $7.98.

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