Summary:
- Fannie Mae (FNMA, Financial) announces the sale of non-performing loans, aiming to optimize its mortgage portfolio.
- Analyst predictions indicate a potential decline, with modest price targets.
- GuruFocus estimates suggest a significant downside based on current metrics.
Fannie Mae's Strategic Move: Selling Non-Performing Loans
The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is actively reducing its retained mortgage portfolio by initiating the sale of non-performing loans. This sale features two substantial pools comprising 1,119 delinquent loans valued at $198.6 million, along with a Community Impact Pool containing around 40 loans worth $7.2 million.
Wall Street's Perspective: Analyzing Price Targets
The outlook from Wall Street analysts presents cautious optimism. With price targets set by two analysts, Fannie Mae's (FNMA, Financial) average target price is projected at $2.50. The range stretches from a high of $4.00 to a low of $1.00, suggesting a potential downside of 60.25% from the current trading price of $6.29. For further insights, visit the Fannie Mae (FNMA) Forecast page.
Analyst Ratings: An Underperform Status
The consensus from one brokerage firm categorizes Fannie Mae (FNMA, Financial) with an "Underperform" recommendation, rated at 4.0 on a scale where 1 indicates Strong Buy and 5 indicates Sell. This suggests that analysts are cautious about the stock's performance in the near future.
Assessing Value Through the Lens of GuruFocus
In terms of valuation, GuruFocus provides an estimated GF Value for Fannie Mae (FNMA, Financial) at $0.78 in one year, indicating a potential downside of 87.6% from its current price of $6.29. The GF Value reflects a fair trading value based on historical trading multiples, business growth history, and future performance forecasts. For a comprehensive analysis, explore the Fannie Mae (FNMA) Summary page.
