Fannie Mae (OTCMKTS:FNMA) Trading 5.2% Higher – Should You Buy?

Fannie Mae (OTCMKTS:FNMA) traded up 5.2% during mid-day trading on Wednesday . The company traded as high as $10.88 and last traded at $10.8335. 1,140,456 shares were traded during trading, a decline of 88% from the average session volume of 9,418,176 shares. The stock had previously closed at $10.30.

Analysts Set New Price Targets

A number of research firms have weighed in on FNMA. Zacks Research upgraded Fannie Mae from a “strong sell” rating to a “hold” rating in a research note on Monday. Keefe, Bruyette & Woods lifted their price target on Fannie Mae from $4.00 to $10.00 and gave the company an “underperform” rating in a research report on Thursday, September 18th. Deutsche Bank Aktiengesellschaft began coverage on Fannie Mae in a report on Thursday, September 11th. They issued a “buy” rating and a $20.00 price target for the company. Wedbush began coverage on shares of Fannie Mae in a research note on Tuesday, November 25th. They issued an “outperform” rating and a $11.50 target price for the company. Finally, B. Riley raised shares of Fannie Mae to a “hold” rating in a report on Wednesday, October 29th. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $12.88.

Fannie Mae Stock Up 4.2%

The firm has a market cap of $12.43 billion, a price-to-earnings ratio of 5.61 and a beta of 1.71. The company’s 50-day moving average price is $10.70 and its 200-day moving average price is $10.74.

Fannie Mae (OTCMKTS:FNMA) last issued its quarterly earnings results on Wednesday, October 29th. The financial services provider reported $0.65 EPS for the quarter, missing the consensus estimate of $0.72 by ($0.07). Fannie Mae had a negative return on equity of 37.47% and a net margin of 2.61%.The firm had revenue of $7.31 billion for the quarter, compared to analysts’ expectations of $7.72 billion.

Fannie Mae Company Profile

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.