Fannie Mae (FNM) NewsBite - Fannie Mae Slips on Downgrade

Posted on Monday, November 12, 2007 3:33 PM

Fannie Mae (FNM) opened at 48.51. So far today, the stock has hit a low of 47.00 and a high of 49.14. FNM is now trading at 47.14, down 1.86 (-3.83%). The stock hit its 52 week high of 70.57 in August and set its 52 week low of 44.37 in November. The stock has been trading in a range between 50.00 and 70.00 for most of the past year. Fannie Mae shares have been falling today after a Lehman Brothers analyst downgraded the stock to "Equal Weight" from "Overweight," citing turmoil in the credit markets. The broker also cut his price target to $46 from $67. Technical indicators for the stock are bearish and steady while S&P gives FNM a positive 4 STARS (out of 5) buy rating. If you’re looking for a hedged trade on this stock, consider a December bear-call credit spread above the $60 level. FNM stock could rise up to 27.3% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]