Fannie Mae (OTCMKTS:FNMA) Shares Gap Up – Here’s Why

Fannie Mae (OTCMKTS:FNMA) shares gapped up before the market opened on Monday . The stock had previously closed at $4.86, but opened at $5.27. Fannie Mae shares last traded at $6.4060, with a volume of 8,827,879 shares trading hands.

Key Fannie Mae News

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

• Positive Sentiment: Bill Ackman publicly called Fannie and Freddie “stupidly cheap,” suggested up to 10x upside and urged buyers; his social posts triggered a rapid, large-scale rally and renewed investor attention. Fannie Mae and Freddie Mac stocks soar after Ackman calls them ‘stupidly cheap’
• Positive Sentiment: Michael Burry publicly backed Ackman’s view, adding credibility and fueling momentum as two well-known investors highlighted the perceived valuation disconnect. ‘Big Short’ Michael Burry backs billionaire Bill Ackman’s Fannie and Freddie 10x call
• Positive Sentiment: Media and trading outlets report big one-day gains (30–40%) and spike in volume, which can attract momentum traders and ETF flows into mortgage- and housing-focused funds. This amplification helped push shares sharply higher. Fannie Mae and Freddie Mac Log Biggest Gains in a Decade. There’s Still No Decision on Privatization.
• Neutral Sentiment: Coverage points out there’s still no administrative decision to remove Fannie from conservatorship or to sell new shares — meaning the fundamental legal/structural uncertainty that caps long-term upside remains unresolved. Fannie Mae and Freddie Mac Log Biggest Gains in a Decade. There’s Still No Decision on Privatization.
• Neutral Sentiment: Several outlets note increased interest in related ETFs and MBS/housing funds after the rally — this can sustain flows but also raises the risk of a quick unwind if headlines reverse. Ackman’s Bold Call Sends Fannie Mae Stock Soaring 40% — And These ETFs Could Be Smarter Plays
• Neutral Sentiment: Reports and commentary about Fannie experimenting with crypto-backed mortgage pilots circulated; if true, this is a strategic experiment that may broaden product reach but is early-stage and speculative for near-term earnings impact. Next Crypto to Explode Might Already Be Forming as Fannie Mae Opens Bitcoin Mortgages
• Negative Sentiment: Separately, updated condo underwriting rules for Fannie and Freddie have raised concerns about “blacklisting” or stricter eligibility, which could constrain some originations and be viewed as a near-term operational/headline risk. Fannie Mae and Freddie Mac’s updated condo rules are triggering blacklisting fears

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. BTIG Research started coverage on Fannie Mae in a research note on Monday, January 26th. They issued a “buy” rating and a $20.00 price target on the stock. B. Riley Financial reaffirmed a “neutral” rating on shares of Fannie Mae in a research note on Thursday, February 12th. Finally, Zacks Research cut Fannie Mae from a “hold” rating to a “strong sell” rating in a research report on Wednesday, February 11th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Fannie Mae presently has a consensus rating of “Hold” and an average price target of $14.30.

Fannie Mae Stock Down 1.2%

The business’s 50 day simple moving average is $7.18 and its two-hundred day simple moving average is $9.71. The stock has a market cap of $8.41 billion, a P/E ratio of 3.01 and a beta of 1.78.

Fannie Mae (OTCMKTS:FNMA) last announced its quarterly 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 net margin of 2.22% and a negative return on equity of 49.21%. The firm had revenue of $7.33 billion during the quarter, compared to the consensus estimate of $7.33 billion.

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.