Fannie Story

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FNMA -- USA Stock  

USD 1.81  0.03  1.63%

As many millenniums are excited about financial services space, it is only fair to go over Fannie Mae against current market trends. As we have suggested previously, Fannie Mae is beginning its slip as investors shift to be more bearish due to the increased sector volatility. A lot of the latest Fannie Mae price movement was an exact opposite of how the market moved in the last few months. Weak forward indicators of the company may also suggest signs of long term losses for Fannie investors. Fannie Mae is scheduled to announce its earnings today.
Published over two weeks ago
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Will Fannie Mae (OTC:FNMA) continue to slip in March?
Fannie Mae's average rating is Sell from 2 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Fannie Mae market sentiment investors' perception of the future value of Fannie. Let us look at a few aspects of Fannie technical analysis. The company has Profit Margin (PM) of 51.31 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of 63.0 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.63.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Fannie Mae. In general, we focus on analyzing Fannie Mae stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Fannie Mae's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Fannie Mae's intrinsic value. In addition to deriving basic predictive indicators for Fannie Mae, we also check how macroeconomic factors affect Fannie Mae price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Fannie Mae's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Fannie Mae in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Fannie Mae. Your research has to be compared to or analyzed against Fannie Mae's peers to derive any actionable benefits. When done correctly, Fannie Mae's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Fannie Mae.

How does Fannie Stands against Peers?

Analyzing Fannie Mae competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Fannie Mae across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Fannie Mae Competition Details

How Fannie utilizes its cash?

To perform a cash flow analysis of Fannie Mae, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Fannie Mae is receiving and how much cash it distributes out in a given period. The Fannie Mae cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Fannie Mae Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (72.93 Billion)

Payment of 5567 shares by Knight Linda of Fannie Mae subject to Rule 16b-3

Legal trades by Fannie Mae insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Fannie insider trading alert for payment of common stock by Knight Linda, EVP, on 5th of February 2021. This event was filed by Federal National Mortgage with SEC on 2011-02-01. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Closer look at Fannie Mae Mean Deviation

Fannie Mae has current Mean Deviation of 3.57. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.

Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.

Mean Deviation 
 = 
SUM(RET DEV) 
 = 
3.57
SUM = Summation notation
RET DEV = Sum of return deviations of Fannie Mae
N = Number of calculation points for selected time horizon
Let's now compare Fannie Mae Mean Deviation to its closest peers:
FNMA
ELVT
LU
ENVA
LC
FNMA3.5718182658402204
ELVT3.12
LU4.21
ENVA2.53
LC4.23

Will Fannie price slip impact its balance sheet?

Downside variance is down to 23.73. It may suggest a possible volatility slip. Fannie Mae exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Fannie Mae individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Fannie Mae future systematic risk.

Our Final Takeaway

Whereas other entities under the mortgage finance industry are still a bit expensive, Fannie Mae may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Fannie valuation and our trade advice on Fannie Mae is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Fannie Mae.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Fannie Mae. Please refer to our Terms of Use for any information regarding our disclosure principles.

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