Fannie Mae (OTCMKTS:FNMA) Shares Down 23.2% – Time to Sell?

Shares of Fannie Mae (OTCMKTS:FNMA) fell 23.2% on Wednesday. The company traded as low as $4.10 and last traded at $4.27. 3,289,809 shares changed hands during trading, a decline of 38% from the average daily volume of 5,336,530 shares. The stock had previously closed at $5.56.

Analysts Set New Price Targets

FNMA has been the topic of several recent analyst reports. Keefe, Bruyette & Woods reduced their price objective on shares of Fannie Mae from $6.25 to $3.50 and set an “underperform” rating on the stock in a research note on Monday, September 28th. Wedbush started coverage on shares of Fannie Mae in a research note on Thursday, October 22nd. They issued a “hold” rating and a $3.50 target price for the company. Mizuho downgraded shares of Fannie Mae from an “outperform” rating to a “neutral” rating and set a $5.00 price target on the stock. in a research note on Monday, October 12th. Finally, B. Riley Financial cut their price objective on shares of Fannie Mae from $7.00 to $4.50 and set a “neutral” rating on the stock in a report on Thursday, October 29th. Five analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Fannie Mae has a consensus rating of “Reduce” and an average target price of $7.30.

Fannie Mae Stock Down 12.4%

The firm has a market cap of $5.64 billion, a P/E ratio of 22.14 and a beta of 1.72. The business’s 50 day moving average is $4.79 and its 200-day moving average is $6.41.

Fannie Mae (OTCMKTS:FNMA) last announced its quarterly earnings data on Wednesday, October 28th. The financial services provider reported $0.72 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.66 by $0.06. Fannie Mae had a negative return on equity of 88.54% and a net margin of 5.16%. The firm had revenue of $7.65 billion for the quarter, compared to analysts’ expectations of $7.45 billion. As a group, equities analysts predict that Fannie Mae will post 2.71 earnings per share 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) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 79,000 shares of the financial services provider’s stock, valued at approximately $514,000. Institutional investors and hedge funds own 0.02% of the company’s stock.

About Fannie Mae

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.