Fannie Mae (OTCMKTS:FNMA) Shares Up 12% – What’s Next?

Shares of Fannie Mae (OTCMKTS:FNMA) traded up 12% during trading on Wednesday . The stock traded as high as $6.93 and last traded at $6.90. 5,073,590 shares changed hands during mid-day trading, a decline of 17% from the average daily volume of 6,123,639 shares. The stock had previously closed at $6.16.

Analysts Set New Price Targets

A number of research analysts have weighed in on FNMA shares. BTIG Research cut shares of Fannie Mae from a “buy” rating to a “neutral” rating in a research note on Tuesday, June 16th. Wedbush cut shares of Fannie Mae from an “outperform” rating to a “neutral” rating and set a $8.00 price target on the stock. in a report on Friday, May 1st. Mizuho began coverage on Fannie Mae in a research note on Monday, May 4th. They issued an “outperform” rating and a $10.00 price objective on the stock. Zacks Research raised Fannie Mae from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 21st. Finally, Keefe, Bruyette & Woods reduced their price objective on Fannie Mae from $10.00 to $8.50 and set an “underperform” rating for the company in a report on Monday, April 20th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $12.75.

Fannie Mae Trading Up 12.0%

The company has a market capitalization of $7.99 billion, a P/E ratio of 690.69 and a beta of 1.57. The company’s fifty day moving average is $7.26 and its 200 day moving average is $8.04.

Fannie Mae (OTCMKTS:FNMA) last issued its quarterly earnings data on Wednesday, April 29th. The financial services provider reported $0.63 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.63. Fannie Mae had a negative return on equity of 65.94% and a net margin of 4.53%.The business had revenue of $7.28 billion for the quarter, compared to analysts’ expectations of $7.25 billion. Equities research analysts predict that Fannie Mae will post 2.57 EPS for the current year.

About Fannie Mae

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.