Fannie Mae (OTCMKTS:FNMA) Share Price Crosses Below 200 Day Moving Average – Here’s Why

Fannie Mae (OTCMKTS:FNMA)’s stock price passed below its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $8.24 and traded as low as $6.31. Fannie Mae shares last traded at $6.49, with a volume of 5,015,108 shares trading hands.

Analysts Set New Price Targets

Several equities research analysts recently commented on the stock. Mizuho began coverage on shares of Fannie Mae in a report on Monday, May 4th. They issued an “outperform” rating and a $10.00 price target for the company. Keefe, Bruyette & Woods dropped their target price on shares of Fannie Mae from $10.00 to $8.50 and set an “underperform” rating on the stock in a research report on Monday, April 20th. Zacks Research raised shares of Fannie Mae from a “strong sell” rating to a “hold” rating in a research note on Tuesday, April 21st. Finally, Wedbush lowered shares of Fannie Mae from an “outperform” rating to a “neutral” rating and set a $8.00 price target on the stock. in a research note on Friday, May 1st. Two analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $12.75.

Fannie Mae Price Performance

The stock has a market capitalization of $7.52 billion, a price-to-earnings ratio of 649.65 and a beta of 1.57. The stock has a 50 day moving average price of $7.35 and a 200-day moving average price of $8.24.

Fannie Mae (OTCMKTS:FNMA) last posted its quarterly earnings data on Wednesday, April 29th. The financial services provider reported $0.63 EPS 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 65.94% and a net margin of 4.53%. As a group, research analysts forecast that Fannie Mae will post 2.57 earnings per share for the current 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.