Fannie Mae (OTCMKTS:FNMA) Shares Up 5.4% – Here’s Why

Shares of Fannie Mae (OTCMKTS:FNMA) shot up 5.4% during trading on Wednesday. The company traded as high as $4.05 and last traded at $3.93. 1,055,912 shares were traded during trading, a decline of 80% from the average session volume of 5,241,042 shares. The stock had previously closed at $3.73.

Analyst Ratings Changes

Several equities analysts have recently weighed in on FNMA shares. Keefe, Bruyette & Woods reduced their price objective on Fannie Mae from $6.25 to $3.50 and set an “underperform” rating on the stock in a research note on Monday, September 28th. Mizuho set a $5.00 target price on shares of Fannie Mae and gave the company a “neutral” rating in a research note on Monday, October 12th. B. Riley Financial cut their price objective on Fannie Mae from $8.00 to $7.00 and set a “neutral” rating on the stock in a research report on Thursday, July 30th. Finally, Wedbush reissued a “neutral” rating and set a $3.50 price target on shares of Fannie Mae in a research report on Thursday. Five research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Fannie Mae has an average rating of “Reduce” and a consensus price target of $7.80.

Fannie Mae Stock Up 12.6%

The stock has a market cap of $4.88 billion, a price-to-earnings ratio of 105.28 and a beta of 1.68. The company has a 50 day simple moving average of $5.05 and a 200-day simple moving average of $6.20.

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

Institutional Investors Weigh In On Fannie Mae

An institutional investor recently bought a new position in Fannie Mae stock. Ratan Capital Management LP bought a new stake in shares of Fannie Mae (OTCMKTS:FNMA) during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund bought 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 known as the Federal National Mortgage Association, is a government-sponsored enterprise that supports the U.S. housing finance system. It operates in the secondary mortgage market, purchasing qualifying residential mortgage loans from approved lenders and helping provide liquidity so those lenders can continue offering mortgage financing to homebuyers and homeowners.

Fannie Mae finances its activities primarily by issuing debt and mortgage-backed securities. It also guarantees certain mortgage-backed securities, helping connect mortgage lenders with institutional investors.