Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, and Freddie Mac (FMCC) stocks were a hot topic on Monday following comments from Pershing Square Capital Management founder and CEO Bill Ackman. The hedge fund manager took to X to speak about high-quality businesses that are trading at extremely low prices. When commenting on the mortgage companies, he said, “And Fannie and Freddie are stupidly cheap. Asymmetry at its best. They could be a 10X and it could happen soon.”
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Interest in Fannie Mae and Freddie Mac has grown recently due to reports that the U.S. government will hold initial public offerings (IPOs) for the mortgage companies. This would see the return of FNMA and FMCC stocks to public exchanges. Currently, the shares trade over-the-counter after they were delisted from major exchanges in June 2010. This was the result of their being placed in government conservatorship due to the U.S. housing crisis.
An IPO for Fannie Mae and Freddie Mac would bring an end to government conservatorship of the companies. However, it’s unclear when this would happen. Some sources have claimed the federal government is targeting IPOs for the first half of 2026. Others, such as hedge fund manager Michael Burry, said there’s unlikely to be an IPO for these mortgage companies until at least 2027.
Fannie Mae and Freddie Mac Stock Movements Today
Fannie Mae stock closed out Friday down 1.62%, while Freddie Mac stock was down 4.78% when markets closed on Friday. The shares haven’t performed well recently, with FNMA stock down 54.71% year-to-date and FMCC stock down 56.8% year-to-date. Fannie Mae stock has also fallen 23.1% over the past 12 months, while Freddie Mac stock has dropped 18.13% over that same period of time.
Are Fannie Mae and Freddie Mac Stocks a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus ratings for Fannie Mae and Freddie Mac are Moderate Buy. FNMA stock has an average price target of $11.25, representing a potential 131.48% upside for the shares. FMCC stock has an average price target of $16, suggesting a possible 265.3% upside for the shares.
