Fannie Mae (OTCMKTS:FNMA) Stock Falls 3.9% – Should You Sell?

Fannie Mae (OTCMKTS:FNMA) shares fell 3.9% during mid-day trading on Monday. The stock traded as low as $3.57 and last traded at $3.6140. 377,505 shares traded hands during mid-day trading, a decline of 93% from the average daily volume of 5,226,897 shares. The stock had previously closed at $3.76.

Analyst Ratings Changes

A number of research analysts have commented on FNMA shares. Wedbush reaffirmed a “neutral” rating and issued a $8.00 price objective on shares of Fannie Mae in a report on Thursday, July 30th. B. Riley Financial dropped their target price on Fannie Mae from $8.00 to $7.00 and set a “neutral” rating for the company in a report on Thursday, July 30th. Mizuho set a $5.00 target price on shares of Fannie Mae and gave the company a “neutral” rating in a research report on Monday, October 12th. Finally, Keefe, Bruyette & Woods reduced their target price on shares of Fannie Mae from $6.25 to $3.50 and set an “underperform” rating for the company in a research report on Monday, September 28th. Five investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Reduce” and an average price target of $8.70.

Fannie Mae Price Performance

The business’s 50-day moving average price is $5.14 and its two-hundred day moving average price is $6.24. The company has a market capitalization of $4.32 billion, a price-to-earnings ratio of 93.27 and a beta of 1.68.

Fannie Mae (OTCMKTS:FNMA) last issued its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $0.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.05. Fannie Mae had a negative return on equity of 76.66% and a net margin of 4.59%. The business had revenue of $7.57 billion during the quarter, compared to analysts’ expectations of $7.32 billion. As a group, research analysts predict that Fannie Mae will post 2.63 EPS for the current year.

Institutional Inflows and Outflows

A hedge fund recently bought a new position in Fannie Mae stock. Hennessy Advisors Inc. bought a new stake in Fannie Mae (OTCMKTS:FNMA) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 30,000 shares of the financial services provider’s stock, valued at approximately $195,000. 0.02% of the stock is currently owned by hedge funds and other institutional investors.

Fannie Mae Company Profile

Fannie Mae, formally known as the Federal National Mortgage Association, is a government-sponsored enterprise that supports the U.S. housing finance system. It operates in the secondary mortgage market, purchasing qualifying residential mortgage loans from approved lenders and helping provide liquidity so those lenders can continue offering mortgage financing to homebuyers and homeowners.

Fannie Mae finances its activities primarily by issuing debt and mortgage-backed securities. It also guarantees certain mortgage-backed securities, helping connect mortgage lenders with institutional investors.