Freddie Mac (OTCMKTS:FMCC) Shares Gap Down – Here’s Why

Freddie Mac (OTCMKTS:FMCC)’s share price gapped down before the market opened on Wednesday . The stock had previously closed at $5.48, but opened at $5.30. Freddie Mac shares last traded at $5.40, with a volume of 129,348 shares.

Analyst Upgrades and Downgrades

FMCC has been the topic of several analyst reports. BTIG Research cut Freddie Mac from a “buy” rating to a “neutral” rating in a report on Tuesday, June 16th. Keefe, Bruyette & Woods reduced their target price on Freddie Mac from $9.00 to $8.50 and set an “underperform” rating on the stock in a research report on Monday, April 20th. Finally, Mizuho began coverage on Freddie Mac in a research note on Monday, May 4th. They issued an “outperform” rating and a $9.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $15.17.

Freddie Mac Stock Performance

The firm’s 50-day moving average is $6.09 and its 200 day moving average is $6.71.

Freddie Mac (OTCMKTS:FMCC) last announced its quarterly earnings results on Thursday, April 30th. The company reported $0.01 earnings per share for the quarter. Freddie Mac had a net margin of 8.61% and a negative return on equity of 65.39%. The company had revenue of $6.13 billion for the quarter, compared to analyst estimates of $5.61 billion. Equities research analysts expect that Freddie Mac will post 0.01 EPS for the current fiscal year.

About Freddie Mac

Freddie Mac (OTCMKTS:FMCC), officially the Federal Home Loan Mortgage Corporation, is a government-sponsored enterprise chartered by Congress in 1970 to enhance liquidity and stability in the U.S. housing finance system. Headquartered in McLean, Virginia, the company operates under the supervision of the Federal Housing Finance Agency (FHFA) and carries a congressional mandate to support affordable, sustainable homeownership and rental housing markets nationwide.

The company’s primary business activities involve purchasing mortgage loans from approved lenders, pooling them into mortgage-backed securities (MBS), and guaranteeing the timely payment of principal and interest to investors.