Fannie Mae (OTCMKTS:FNMA) Shares Down 7.4% – What’s Next?

Shares of Fannie Mae (OTCMKTS:FNMA) were down 7.4% on Friday . The stock traded as low as $6.66 and last traded at $6.74. Approximately 1,261,143 shares changed 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

A number of equities research analysts recently issued reports on the company. Wedbush cut Fannie Mae from an “outperform” rating to a “neutral” rating and set a $8.00 price objective on the stock. in a research note on Friday, May 1st. BTIG Research cut shares of Fannie Mae from a “buy” rating to a “neutral” rating in a research note on Tuesday, June 16th. Mizuho started coverage on shares of Fannie Mae in a report on Monday, May 4th. They issued an “outperform” rating and a $10.00 price objective for the company. 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 note on Monday, April 20th. Finally, Zacks Research raised shares of Fannie Mae from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 21st. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $12.75.

Fannie Mae Stock Down 9.2%

The firm has a market capitalization of $7.65 billion, a PE ratio of 661.66 and a beta of 1.57. The company has a 50-day moving average of $7.22 and a 200 day moving average of $7.98.

Fannie Mae (OTCMKTS:FNMA) last released its quarterly 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. The firm had revenue of $7.28 billion for the quarter, compared to analysts’ expectations of $7.25 billion. Fannie Mae had a negative return on equity of 65.94% and a net margin of 4.53%. As a group, equities analysts anticipate that Fannie Mae will post 2.57 EPS 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.