Fannie Mae (OTCMKTS:FNMA) Stock Price Down 7.4% – Here’s What Happened

Fannie Mae (OTCMKTS:FNMA) shares fell 7.4% on Tuesday . The company traded as low as $5.06 and last traded at $5.14. 3,144,604 shares were traded during trading, a decline of 39% from the average daily volume of 5,128,529 shares. The stock had previously closed at $5.55.

Analyst Ratings Changes

Several equities research analysts have commented on the stock. B. Riley Financial decreased their price objective on shares of Fannie Mae from $8.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday, July 30th. BTIG Research downgraded Fannie Mae from a “buy” rating to a “neutral” rating in a research report on Tuesday, June 16th. Finally, Wedbush reissued a “neutral” rating and issued a $8.00 price objective on shares of Fannie Mae in a research report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $10.70.

Fannie Mae Price Performance

The firm has a fifty day simple moving average of $6.02 and a two-hundred day simple moving average of $6.55. The firm has a market capitalization of $5.69 billion, a P/E ratio of 122.78 and a beta of 1.70.

Fannie Mae (OTCMKTS:FNMA) last released its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $0.68 EPS for the quarter, beating the consensus estimate of $0.63 by $0.05. The business had revenue of $7.57 billion for the quarter, compared to the consensus estimate of $7.32 billion. Fannie Mae had a net margin of 4.59% and a negative return on equity of 76.66%. On average, research analysts anticipate that Fannie Mae will post 2.63 EPS for the current year.

Hedge Funds Weigh In On Fannie Mae

A hedge fund recently bought a new position in Fannie Mae stock. Ratan Capital Management LP acquired a new stake in shares of Fannie Mae (OTCMKTS:FNMA) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund acquired 79,000 shares of the financial services provider’s stock, valued at approximately $514,000. Institutional investors own 0.02% of the company’s stock.

Fannie Mae Company Profile

Fannie Mae, formally known as the Federal National Mortgage Association, is a government-sponsored enterprise that supports liquidity and stability in the U.S. housing finance system. The company does not generally lend directly to homebuyers. Instead, it purchases qualifying residential mortgages from approved lenders, providing those institutions with funds to originate additional loans.

Fannie Mae finances its activities primarily by issuing debt and mortgage-backed securities. It also guarantees the timely payment of principal and interest on many mortgage-backed securities backed by the loans it purchases.