Fannie Mae (OTCMKTS:FNMA) Rating Increased to Hold at Zacks Research

Zacks Research upgraded shares of Fannie Mae (OTCMKTS:FNMA) from a strong sell rating to a hold rating in a research note released on Tuesday,Zacks.com reports.

Several other analysts also recently commented on FNMA. B. Riley Financial reiterated a “neutral” rating on shares of Fannie Mae in a research note on Thursday, February 12th. Keefe, Bruyette & Woods lowered their price target on Fannie Mae from $10.00 to $8.50 and set an “underperform” rating on the stock in a report on Monday. Finally, BTIG Research began coverage on Fannie Mae in a report on Monday, January 26th. They issued a “buy” rating and a $20.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $14.00.

Fannie Mae Stock Performance

OTCMKTS:FNMA opened at $7.64 on Tuesday. The firm has a market cap of $8.85 billion, a P/E ratio of 3.27 and a beta of 1.73. Fannie Mae has a fifty-two week low of $3.60 and a fifty-two week high of $15.99. The firm has a 50-day simple moving average of $6.88 and a two-hundred day simple moving average of $9.13.

Fannie Mae (OTCMKTS:FNMA) last issued its earnings results on Wednesday, February 11th. The financial services provider reported $0.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.68 by ($0.08). Fannie Mae had a negative return on equity of 49.21% and a net margin of 2.22%.The firm had revenue of $7.33 billion during the quarter, compared to the consensus estimate of $7.33 billion. On average, equities research analysts predict that Fannie Mae will post 2.55 EPS for the current year.

Trending Headlines about Fannie Mae

Here are the key news stories impacting Fannie Mae this week:

• Positive Sentiment: Fannie announced updates to its Selling Guide to allow VantageScore 4.0 immediately and to permit FICO 10T in the future, and said it will publish historical score data this summer — a direct, official step toward broader credit-score competition that could lower borrower costs and expand eligible borrower pools. Fannie Mae Announces Credit Score Model Updates
• Positive Sentiment: Regulatory and industry coverage notes the move away from FICO dominance — this increases pricing competition among scoring vendors and can reduce originator/borrower friction, potentially supporting higher loan deliveries over time. Fannie Mae, Freddie Mac Move Beyond FICO
• Positive Sentiment: Market reaction: coverage highlights FICO share declines after the announcement, implying investors view the change as meaningful industry disruption that benefits Fannie/Freddie’s ability to broaden access. That market signal helps explain upward pressure on FNMA stock. FICO shares slide as Freddie Mac, Fannie Mae begin accepting rival VantageScore
• Neutral Sentiment: Coverage notes the scoring changes will allow alternative data (rent/utilities) to be considered — this could modestly increase credit access but the initial rollout is limited to approved lenders, so near-term volume impact is uncertain. Fannie and Freddie to allow credit scores based on rent and utilities payments
• Neutral Sentiment: Industry trade coverage frames the FHFA decision as opening the door to score competition — strategically important long-term but operational and implementation details will drive timing and magnitude of benefits. FHFA Opens Door To Credit Score Competition
• Negative Sentiment: Keefe, Bruyette & Woods cut Fannie Mae’s price target to $8.50 — a direct sell-side downgrade that can weigh on sentiment despite the scoring-news-driven upside. KBW Lowers Fannie Mae Price Target
• Negative Sentiment: Legal/regulatory overhang: the FHFA has asked the DC Circuit to overturn a $612M verdict in a Fannie shareholder class action, and public comments from policymakers highlighting risks at the GSEs add uncertainty — these remain material downside risks if unresolved. FHFA Urges DC Circuit to Overturn Verdict
• Negative Sentiment: Commentary noting past governance/risk warnings at Fannie and Freddie may keep some investors cautious about policy/regulatory exposure despite the scoring change. Warsh Says He Warned of Risks at Fannie Mae and Freddie Mac

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.