Fannie Mae (OTCMKTS:FNMA) Shares Gap Up – Should You Buy?

Fannie Mae (OTCMKTS:FNMA)’s stock price gapped up before the market opened on Thursday . The stock had previously closed at $4.91, but opened at $5.42. Fannie Mae shares last traded at $4.9880, with a volume of 318,941 shares traded.

Analyst Ratings Changes

A number of research firms have weighed in on FNMA. B. Riley Financial decreased their price objective on Fannie Mae from $8.00 to $7.00 and set a “neutral” rating on the stock in a report on Thursday, July 30th. BTIG Research cut shares of Fannie Mae from a “buy” rating to a “neutral” rating in a research report on Tuesday, June 16th. Finally, Wedbush restated a “neutral” rating and set a $8.00 target price on shares of Fannie Mae in a research report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $10.70.

Fannie Mae Price Performance

The company has a market capitalization of $5.69 billion, a price-to-earnings ratio of 122.78 and a beta of 1.70. The company’s fifty day simple moving average is $6.02 and its two-hundred day simple moving average is $6.55.

Fannie Mae (OTCMKTS:FNMA) last issued its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $0.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.05. Fannie Mae had a negative return on equity of 76.66% and a net margin of 4.59%.The business had revenue of $7.57 billion during the quarter, compared to analyst estimates of $7.32 billion. Equities research analysts expect that Fannie Mae will post 2.63 earnings per share for the current year.

Institutional Trading of Fannie Mae

An institutional investor recently bought a new position in Fannie Mae stock. Ratan Capital Management LP acquired a new position in shares of Fannie Mae (OTCMKTS:FNMA) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 79,000 shares of the financial services provider’s stock, valued at approximately $514,000. 0.02% of the stock is currently owned by hedge funds and other institutional investors.

Fannie Mae Company Profile

Fannie Mae, formally known as the Federal National Mortgage Association, is a government-sponsored enterprise that supports liquidity and stability in the U.S. housing finance system. The company does not generally lend directly to homebuyers. Instead, it purchases qualifying residential mortgages from approved lenders, providing those institutions with funds to originate additional loans.

Fannie Mae finances its activities primarily by issuing debt and mortgage-backed securities. It also guarantees the timely payment of principal and interest on many mortgage-backed securities backed by the loans it purchases.