Fannie Mae (OTCMKTS:FNMA) Shares Up 11.1% Following Better-Than-Expected Earnings

Fannie Mae (OTCMKTS:FNMA)’s share price rose 11.1% during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $4.62 and last traded at $4.61. Approximately 2,983,327 shares traded hands during trading, a decline of 44% from the average session volume of 5,317,765 shares. The stock had previously closed at $4.15.

The financial services provider reported $0.72 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.66 by $0.06. The company had revenue of $7.65 billion during the quarter, compared to analysts’ expectations of $7.45 billion. Fannie Mae had a negative return on equity of 76.66% and a net margin of 4.59%.

Trending Headlines about Fannie Mae

Here are the key news stories impacting Fannie Mae this week:

• Positive Sentiment: Third-quarter results exceeded expectations. Fannie Mae reported approximately $4.2 billion in net income, up from $4.0 billion in the prior quarter. Revenue reached about $7.7 billion, while reported earnings of $0.72 per share surpassed the $0.66 consensus estimate. Net worth increased to $119.6 billion, and the company supplied $103 billion of mortgage-market liquidity. Fannie Mae Reports Net Income of $4.2 Billion for Third Quarter 2026
• Positive Sentiment: Higher interest rates helped net interest income. The quarterly increase in net income and revenue was supported by stronger net interest income and net fair-value gains, suggesting improved earnings generation despite challenging mortgage-market conditions. Fannie Mae Q3 Net Income and Revenue Rise
• Neutral Sentiment: Updated AI and cybersecurity requirements indicate continued investment in risk management and technology controls. The changes may strengthen operational resilience, although they could also increase compliance requirements for counterparties and technology users. Fannie Mae Posts Updates to AI and Cybersecurity Requirements
• Negative Sentiment: B. Riley lowered its Fannie Mae price target to $4.50 from $7. The reduction signals weaker near-term analyst confidence and leaves limited implied upside from recent trading levels. Fannie Mae Price Target Lowered at B. Riley
• Negative Sentiment: Credit risk remains a concern. Provision for credit losses rose to $1.1 billion from $485 million in the second quarter. Separate housing coverage warned that landlords face substantial refinancing and debt risks, potentially weighing on mortgage-credit quality. Fannie Mae and Freddie Mac Housing Warning
• Negative Sentiment: Analyst sentiment remains cautious: Wall Street coverage rated the stock “Reduce,” reinforcing concerns about valuation, profitability quality, and the unresolved government-conservatorship exit. Fannie Mae Stock Rated Reduce

Analyst Ratings Changes

A number of analysts recently commented on FNMA shares. Wedbush started coverage on shares of Fannie Mae in a research report on Thursday, October 22nd. They issued a “hold” rating and a $3.50 price objective for the company. B. Riley Financial reissued a “neutral” rating on shares of Fannie Mae in a research report on Thursday. Keefe, Bruyette & Woods lowered their price objective on shares of Fannie Mae from $6.25 to $3.50 and set an “underperform” rating for the company in a research report on Monday, September 28th. Finally, Mizuho set a $5.00 price objective on shares of Fannie Mae and gave the stock a “neutral” rating in a report on Monday, October 12th. Five research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus target price of $7.80.

Institutional Investors Weigh In On Fannie Mae

An institutional investor recently bought a new stake in Fannie Mae stock. Hennessy Advisors Inc. bought a new position in shares of Fannie Mae (OTCMKTS:FNMA) during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm bought 30,000 shares of the financial services provider’s stock, valued at approximately $195,000. 0.02% of the stock is currently owned by institutional investors and hedge funds.

Fannie Mae Price Performance

The business’s 50-day moving average price is $4.90 and its two-hundred day moving average price is $6.53. The company has a market capitalization of $5.34 billion, a price-to-earnings ratio of 115.28 and a beta of 1.68.

Fannie Mae Company Profile

Fannie Mae, formally known as the Federal National Mortgage Association, is a government-sponsored enterprise that supports the U.S. housing finance system. It operates in the secondary mortgage market, purchasing qualifying residential mortgage loans from approved lenders and helping provide liquidity so those lenders can continue offering mortgage financing to homebuyers and homeowners.

Fannie Mae finances its activities primarily by issuing debt and mortgage-backed securities. It also guarantees certain mortgage-backed securities, helping connect mortgage lenders with institutional investors.