Fannie Mae (OTCMKTS:FNMA) Shares Gap Up – Still a Buy?

Shares of Fannie Mae (OTCMKTS:FNMA) gapped up prior to trading on Friday . The stock had previously closed at $6.75, but opened at $7.27. Fannie Mae shares last traded at $7.08, with a volume of 1,899,523 shares trading hands.

Wall Street Analysts Forecast Growth

FNMA has been the subject of a number of analyst reports. B. Riley Financial reaffirmed a “neutral” rating on shares of Fannie Mae in a research note on Thursday, February 12th. Zacks Research raised Fannie Mae from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 21st. Mizuho initiated coverage on Fannie Mae in a research note on Monday, May 4th. They issued an “outperform” rating and a $10.00 price target for the company. Wedbush downgraded Fannie Mae from an “outperform” rating to a “neutral” rating and set a $8.00 price target for the company. in a research note on Friday, May 1st. Finally, Keefe, Bruyette & Woods reduced their price objective on Fannie Mae from $10.00 to $8.50 and set an “underperform” rating on the stock in a research note on Monday, April 20th. Two investment analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Fannie Mae currently has a consensus rating of “Moderate Buy” and a consensus price target of $12.75.

Fannie Mae Stock Up 1.0%

The stock has a market cap of $7.90 billion, a price-to-earnings ratio of 682.68 and a beta of 1.57. The company has a 50 day simple moving average of $7.32 and a 200 day simple moving average of $8.38.

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