Fannie Mae (OTCMKTS:FNMA) Stock Price Down 9.8% – Time to Sell?

Fannie Mae (OTCMKTS:FNMA) dropped 9.8% during mid-day trading on Friday . The company traded as low as $8.72 and last traded at $8.7488. Approximately 4,358,652 shares traded hands during trading, a decline of 7% from the average daily volume of 4,684,039 shares. The stock had previously closed at $9.70.

Wall Street Analysts Forecast Growth

FNMA has been the subject of several recent research reports. Wedbush started coverage on shares of Fannie Mae in a research report on Tuesday, November 25th. They set an “outperform” rating and a $11.50 target price for the company. B. Riley raised shares of Fannie Mae to a “hold” rating in a research report on Wednesday, October 29th. Keefe, Bruyette & Woods upped their price objective on Fannie Mae from $4.00 to $10.00 and gave the stock an “underperform” rating in a research note on Thursday, September 18th. Finally, Zacks Research upgraded Fannie Mae from a “strong sell” rating to a “hold” rating in a research report on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Fannie Mae currently has an average rating of “Hold” and a consensus target price of $12.88.

Fannie Mae Price Performance

The company has a 50-day moving average price of $10.58 and a 200 day moving average price of $10.80. The firm has a market capitalization of $10.14 billion, a PE ratio of 5.53 and a beta of 1.78.

Fannie Mae (OTCMKTS:FNMA) last posted its quarterly earnings results on Wednesday, October 29th. The financial services provider reported $0.65 EPS for the quarter, missing analysts’ consensus estimates of $0.72 by ($0.07). Fannie Mae had a negative return on equity of 37.47% and a net margin of 2.61%.The business had revenue of $7.31 billion during the quarter, compared to analysts’ expectations of $7.72 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.