Fannie Mae (OTCMKTS:FNMA) Rating Increased to Hold at Zacks Research

Fannie Mae (OTCMKTS:FNMA) was upgraded by investment analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research note issued on Tuesday,Zacks.com reports.

A number of other brokerages also recently commented on FNMA. Keefe, Bruyette & Woods reduced their target price on shares of Fannie Mae from $10.00 to $8.50 and set an “underperform” rating on the stock in a research note on Monday. B. Riley Financial reaffirmed a “neutral” rating on shares of Fannie Mae in a research note on Thursday, February 12th. Finally, BTIG Research began coverage on shares of Fannie Mae in a research note on Monday, January 26th. They set a “buy” rating and a $20.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $14.00.

Fannie Mae Trading Down 3.2%

OTCMKTS:FNMA opened at $7.64 on Tuesday. The company’s 50-day moving average price is $6.88 and its 200-day moving average price is $9.13. Fannie Mae has a twelve month low of $3.60 and a twelve month high of $15.99. The company has a market cap of $8.85 billion, a P/E ratio of 3.27 and a beta of 1.73.

Fannie Mae (OTCMKTS:FNMA) last issued its earnings results on Wednesday, February 11th. The financial services provider reported $0.60 EPS for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.08). Fannie Mae had a negative return on equity of 49.21% and a net margin of 2.22%.The firm had revenue of $7.33 billion for the quarter, compared to analysts’ expectations of $7.33 billion. On average, analysts expect that Fannie Mae will post 2.55 earnings per share for the current year.

Fannie Mae News Summary

Here are the key news stories impacting Fannie Mae this week:

• Positive Sentiment: Fannie announced credit-score model updates to allow VantageScore 4.0 now and FICO 10T in the future, widening acceptable scoring options for loans delivered to Fannie — this can expand the pool of eligible borrowers and support purchase volume growth. Read More.
• Positive Sentiment: FHFA/HUD-level rollout intends to include alternative data (rent/utilities) and a limited lender rollout, which could help renters gain access to mortgage credit and improve origination flow for lenders working with Fannie. Read More.
• Neutral Sentiment: Market reaction has been concentrated on credit-score vendors rather than Fannie’s operations — FICO shares plunged on the news, reflecting competitive shifts in the scoring market; that weakens FICO but represents policy execution rather than an immediate financial hit to Fannie. Read More.
• Neutral Sentiment: FHFA’s modernization move opens credit-score competition and promises publication of historical score data this summer — useful for modelers and investors but not an immediate earnings driver. Read More.
• Negative Sentiment: Analyst sentiment has softened: Keefe, Bruyette & Woods cut Fannie Mae’s price target to $8.50, which can weigh on near-term investor expectations. Read More.
• Negative Sentiment: Regulatory and legal overhang persists — public comments by a Fed nominee highlighting risks at the GSEs and ongoing litigation (FHFA asking a court to overturn a $612M verdict in a shareholder class action) keep governance and liability uncertainty on investors’ radar. Read More. Read More.

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.