Fannie Mae (OTCMKTS:FNMA) Stock Price Breaks Below Fifty Day Moving Average – Here’s Why

Fannie Mae (OTCMKTS:FNMA)’s share price passed below its fifty day moving average during trading on Tuesday. The stock has a fifty day moving average of $4.62 and traded as low as $4.30. Fannie Mae shares last traded at $4.35, with a volume of 3,996,502 shares trading hands.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on FNMA shares. Wedbush initiated coverage on Fannie Mae in a research report on Thursday, October 22nd. They issued a “hold” rating and a $3.50 target price on the stock. Mizuho cut Fannie Mae from an “outperform” rating to a “neutral” rating and set a $5.00 price target for the company. in a research report on Monday, October 12th. Keefe, Bruyette & Woods reduced their price objective on Fannie Mae from $6.25 to $3.50 and set an “underperform” rating for the company in a research note on Monday, September 28th. Finally, B. Riley Financial decreased their price objective on Fannie Mae from $7.00 to $4.50 and set a “neutral” rating on the stock in a report on Thursday, October 29th. Five investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and an average price target of $7.30.

Fannie Mae Stock Down 1.4%

The company’s 50-day moving average is $4.56 and its 200-day moving average is $6.26. The stock has a market capitalization of $5.06 billion, a price-to-earnings ratio of 19.86 and a beta of 1.72.

Fannie Mae (OTCMKTS:FNMA) last announced its earnings results on Wednesday, October 28th. The financial services provider reported $0.72 earnings per share for the quarter, topping the consensus estimate of $0.66 by $0.06. The company had revenue of $7.65 billion during the quarter, compared to analyst estimates of $7.45 billion. Fannie Mae had a net margin of 5.16% and a negative return on equity of 88.54%. Sell-side analysts anticipate that Fannie Mae will post 2.71 EPS for the current year.

Institutional Investors Weigh In On Fannie Mae

A hedge fund recently bought a new stake in Fannie Mae stock. Ratan Capital Management LP acquired a new stake in Fannie Mae (OTCMKTS:FNMA) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 79,000 shares of the financial services provider’s stock, valued at approximately $514,000. Institutional investors own 0.02% of the company’s stock.

About Fannie Mae

Fannie Mae, formally the Federal National Mortgage Association, is a U.S. government-sponsored enterprise that supports the secondary mortgage market. Founded in 1938, the company generally does not make mortgage loans directly to borrowers. Instead, it purchases eligible mortgages from lenders, helping those lenders replenish funds for additional home loans. Fannie Mae also packages many of the mortgages it acquires into mortgage-backed securities and guarantees investors timely payment of principal and interest, subject to the terms of those securities.