Fannie Mae (OTCMKTS:FNMA) Trading 5.8% Higher – Here’s Why

Shares of Fannie Mae (OTCMKTS:FNMA) shot up 5.8% on Tuesday . The company traded as high as $7.74 and last traded at $7.5850. 2,668,077 shares traded hands during mid-day trading, a decline of 61% from the average session volume of 6,919,294 shares. The stock had previously closed at $7.17.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the company. B. Riley Financial restated a “neutral” rating on shares of Fannie Mae in a research note on Thursday, February 12th. BTIG Research began coverage on shares of Fannie Mae in a research note on Monday, January 26th. They issued a “buy” rating and a $20.00 target price for the company. Zacks Research upgraded Fannie Mae from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 21st. Finally, Keefe, Bruyette & Woods lowered their price objective on shares of Fannie Mae from $10.00 to $8.50 and set an “underperform” rating for the company in a report on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $14.00.

Fannie Mae Stock Performance

The stock has a market capitalization of $9.47 billion, a P/E ratio of 818.82 and a beta of 1.73. The business has a 50-day moving average price of $6.83 and a 200 day moving average price of $8.96.

Fannie Mae (OTCMKTS:FNMA) last issued its quarterly earnings results on Wednesday, April 29th. The financial services provider reported $0.63 earnings per share for the quarter, meeting 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 62.46% and a net margin of 4.53%. As a group, research analysts forecast that Fannie Mae will post 2.53 earnings per share for the current fiscal year.

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.