Fannie Mae's stock soars 51% after Bill Ackman calls it 'stupidly cheap'
Fannie Mae's stock surged by over 50% in a single day after billionaire investor Bill Ackman called the company 'stupidly cheap'. The sharp rise followed his public endorsement on social media, drawing attention from other high-profile investors. Despite this rally, the stock remains well below its 2026 peak, with mixed financial results in recent quarters. On March 30, Fannie Mae's share price jumped 51.2% intraday. The spike came after Ackman, whose firm Pershing Square Holdings owns nearly 10% of both Fannie Mae and Freddie Mac, highlighted their undervaluation. His comments gained further support from Michael Burry, the investor famous for predicting the 2008 housing crash.
The stock's recent performance has been volatile. While it climbed 7.27% over the past 52 weeks, it has fallen 34% since the start of 2026. After the rally, its 14-day relative strength index (RSI) reached 56.95, suggesting strong upward momentum. Yet, the forward-adjusted price-to-sales ratio of 1.43 remains below the industry average of 2.72. Financially, Fannie Mae reported flat revenues of $7.33 billion in Q4 2025, matching the previous year's figure. However, net income dropped 9% to $3.53 billion in the same period. Analysts now forecast a modest 1.61% rise in earnings per share for Q1 2026, reaching $0.63. Regulatory progress, however, has stalled. As of April 2, 2026, the Federal Housing Finance Agency (FHFA) had taken no action to assess or advance the potential release of Fannie Mae and Freddie Mac from conservatorship, a status they have held since the 2008 financial crisis.
Fannie Mae's stock has seen sharp swings, driven by investor sentiment and mixed financial results. The company's valuation remains low compared to industry peers, while regulatory uncertainty continues. Without clear steps from the FHFA, the path to privatisation stays unresolved.
