Fannie Mae (OTCMKTS:FNMA) Cut to Strong Sell at Zacks Research

Zacks Research lowered shares of Fannie Mae (OTCMKTS:FNMA) from a hold rating to a strong sell rating in a report issued on Wednesday,Zacks.com reports.

A number of other brokerages also recently weighed in on FNMA. Wedbush began coverage on Fannie Mae in a report on Tuesday, November 25th. They issued an “outperform” rating and a $11.50 target price on the stock. B. Riley Financial reaffirmed a “neutral” rating on shares of Fannie Mae in a research note on Thursday. Finally, BTIG Research started coverage on Fannie Mae in a research report on Monday, January 26th. They issued a “buy” rating and a $20.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $14.30.

Fannie Mae Stock Up 0.3%

Shares of Fannie Mae stock opened at $7.69 on Wednesday. The firm’s 50-day moving average price is $9.83 and its two-hundred day moving average price is $10.74. The company has a market capitalization of $8.91 billion, a price-to-earnings ratio of 3.14 and a beta of 1.73. Fannie Mae has a 12-month low of $4.83 and a 12-month high of $15.99.

Fannie Mae (OTCMKTS:FNMA) last issued its quarterly earnings results on Wednesday, February 11th. The financial services provider reported $0.60 earnings per share for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.08). The firm had revenue of $7.33 billion for the quarter, compared to the consensus estimate of $7.33 billion. Fannie Mae had a negative return on equity of 49.21% and a net margin of 2.22%.

Fannie Mae Company Profile

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.