Fannie Mae (OTCMKTS:FNMA) Stock Crosses Below Two Hundred Day Moving Average – Here’s Why

Fannie Mae (OTCMKTS:FNMA)’s stock price crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $7.67 and traded as low as $5.80. Fannie Mae shares last traded at $5.86, with a volume of 6,156,574 shares changing hands.

Wall Street Analysts Forecast Growth

FNMA has been the topic of a number of recent research reports. Zacks Research raised shares of Fannie Mae from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 21st. Mizuho initiated coverage on Fannie Mae in a report on Monday, May 4th. They set an “outperform” rating and a $10.00 target price for the company. Keefe, Bruyette & Woods dropped their price target on Fannie Mae from $10.00 to $8.50 and set an “underperform” rating on the stock in a research report on Monday, April 20th. Wedbush downgraded 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. Finally, BTIG Research lowered Fannie Mae from a “buy” rating to a “neutral” rating in a research report on Tuesday, June 16th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Fannie Mae presently has a consensus rating of “Hold” and an average target price of $12.75.

Fannie Mae Stock Performance

The stock’s fifty day moving average is $6.92 and its two-hundred day moving average is $7.63. The firm has a market cap of $7.33 billion, a price-to-earnings ratio of 633.63 and a beta of 1.62.

Fannie Mae (OTCMKTS:FNMA) last issued its quarterly earnings data on Wednesday, April 29th. The financial services provider reported $0.63 earnings per share for the quarter, meeting the consensus estimate of $0.63. Fannie Mae had a net margin of 4.53% and a negative return on equity of 65.94%. The firm had revenue of $7.28 billion for the quarter, compared to the consensus estimate of $7.25 billion. Sell-side analysts predict that Fannie Mae will post 2.57 earnings per share 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.