Fannie Mae (OTCMKTS:FNMA) Releases Earnings Results, Meets Estimates

Fannie Mae (OTCMKTS:FNMA) announced its quarterly earnings data on Wednesday. The financial services provider reported $0.63 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.63, Zacks reports. The firm had revenue of $7.28 billion for the quarter, compared to analysts’ expectations of $7.25 billion. Fannie Mae had a negative return on equity of 49.21% and a net margin of 2.22%.

Here are the key takeaways from Fannie Mae’s conference call:

• Fannie Mae reported first-quarter net income of $3.7 billion (up 5% QoQ, 2% YoY) on stable net revenues, which lifted net worth to $112.7 billion.
• Cost-cutting and efficiency actions drove non‑interest expense down 8% QoQ and 16% YoY, lowered the administrative expense ratio to 10.2%, and management plans further automation and AI to sustain a smaller cost base.
• Multifamily credit stress increased — serious delinquencies rose, leading to higher net charge-offs and a sizable provision (including a ~$174 million PCL impact), while investment losses on MBS purchases contributed to other losses and pressured multifamily net income.
• The firm emphasized its market role, providing $116 billion of liquidity to about 385,000 households and supporting a $4.1 trillion guarantee book that backs roughly 24% of U.S. single‑family mortgage debt.

Fannie Mae Trading Up 0.5%

Fannie Mae stock opened at $7.73 on Thursday. Fannie Mae has a 1-year low of $3.60 and a 1-year high of $15.99. The firm has a 50-day moving average of $6.83 and a 200-day moving average of $8.96. The firm has a market cap of $8.95 billion, a P/E ratio of 2.86 and a beta of 1.73.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Zacks Research upgraded shares of Fannie Mae from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 21st. B. Riley Financial reiterated a “neutral” rating on shares of Fannie Mae in a report on Thursday, February 12th. Keefe, Bruyette & Woods dropped their target price 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. Finally, BTIG Research assumed coverage on shares of Fannie Mae in a report on Monday, January 26th. They set a “buy” rating and a $20.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $14.00.

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.