Fannie Mae (OTCMKTS:FNMA) Stock Price Down 5.2% – Time to Sell?

Fannie Mae (OTCMKTS:FNMA)’s share price dropped 5.2% during mid-day trading on Monday . The stock traded as low as $5.75 and last traded at $5.78. Approximately 2,890,892 shares were traded during mid-day trading, a decline of 47% from the average daily volume of 5,426,936 shares. The stock had previously closed at $6.10.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. B. Riley Financial reiterated a “neutral” rating on shares of Fannie Mae in a report on Thursday, February 12th. Wedbush started coverage on shares of Fannie Mae in a report on Tuesday, November 25th. They set an “outperform” rating and a $11.50 target price on the stock. BTIG Research assumed coverage on shares of Fannie Mae in a research note on Monday, January 26th. They issued a “buy” rating and a $20.00 price target on the stock. Finally, Zacks Research downgraded shares of Fannie Mae from a “hold” rating to a “strong sell” rating in a research report on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $14.30.

Fannie Mae Price Performance

The company has a market capitalization of $6.74 billion, a price-to-earnings ratio of 2.50 and a beta of 1.78. The firm has a 50-day moving average price of $8.27 and a two-hundred day moving average price of $10.33.

Fannie Mae (OTCMKTS:FNMA) last released its earnings results on Wednesday, February 11th. The financial services provider reported $0.60 EPS for the quarter, missing the consensus estimate of $0.68 by ($0.08). Fannie Mae had a net margin of 2.22% and a negative return on equity of 49.21%. The firm had revenue of $7.33 billion during the quarter, compared to the consensus estimate of $7.33 billion.

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.