Fannie Mae (OTCMKTS:FNMA) Shares Up 4.2% – Still a Buy?

Fannie Mae (OTCMKTS:FNMA)’s share price traded up 4.2% during mid-day trading on Friday . The company traded as high as $8.70 and last traded at $8.70. 390,798 shares changed hands during trading, a decline of 93% from the average session volume of 5,709,247 shares. The stock had previously closed at $8.35.

Analyst Ratings Changes

FNMA has been the subject of a number of recent analyst reports. Zacks Research raised shares of Fannie Mae from a “strong sell” rating to a “hold” rating in a report on Monday, December 29th. Wedbush initiated coverage on shares of Fannie Mae in a research report on Tuesday, November 25th. They set an “outperform” rating and a $11.50 price objective for the company. BTIG Research assumed coverage on Fannie Mae in a research note on Monday, January 26th. They set a “buy” rating and a $20.00 target price for the company. Finally, B. Riley upgraded Fannie Mae to a “hold” rating in a research note on Wednesday, October 29th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $14.30.

Fannie Mae Stock Down 1.9%

The stock has a market capitalization of $9.48 billion, a price-to-earnings ratio of 4.54 and a beta of 1.78. The stock has a 50 day moving average price of $10.28 and a 200 day moving average price of $10.77.

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