Fannie Mae (OTCMKTS:FNMA) Trading Up 5.7% – What’s Next?

Fannie Mae (OTCMKTS:FNMA) shares shot up 5.7% during trading on Friday . The stock traded as high as $6.47 and last traded at $6.45. Approximately 4,473,264 shares changed hands during mid-day trading, a decline of 25% from the average session volume of 5,969,593 shares. The stock had previously closed at $6.10.

Analysts Set New Price Targets

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

Fannie Mae Price Performance

The stock’s fifty day moving average price is $6.92 and its 200-day moving average price is $7.63. The firm has a market cap of $7.33 billion, a PE ratio of 633.63 and a beta of 1.62.

Fannie Mae (OTCMKTS:FNMA) last posted its quarterly earnings results on Wednesday, April 29th. The financial services provider reported $0.63 earnings per share for the quarter, hitting 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 for the quarter, compared to analyst estimates of $7.25 billion. On average, sell-side analysts anticipate that Fannie Mae will post 2.57 earnings per share for the current fiscal year.

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.