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

Freddie Mac (OTCMKTS:FMCC)’s share price gapped down prior to trading on Friday . The stock had previously closed at $5.37, but opened at $5.09. Freddie Mac shares last traded at $5.45, with a volume of 160,088 shares trading hands.

Analysts Set New Price Targets

FMCC has been the topic of several research analyst reports. BTIG Research lowered Freddie Mac from a “buy” rating to a “neutral” rating in a report on Tuesday, June 16th. Keefe, Bruyette & Woods dropped their price target on shares of Freddie Mac from $9.00 to $8.50 and set an “underperform” rating on the stock in a research note on Monday, April 20th. Mizuho started coverage on shares of Freddie Mac in a report on Monday, May 4th. They issued an “outperform” rating and a $9.00 price target for the company. Finally, Wedbush began coverage on shares of Freddie Mac in a report on Friday, July 31st. They set an “outperform” rating and a $12.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Freddie Mac has a consensus rating of “Moderate Buy” and an average target price of $14.90.

Freddie Mac Stock Performance

The company has a 50 day simple moving average of $5.75 and a 200 day simple moving average of $6.26. The company has a market capitalization of $3.52 billion, a PE ratio of 541.54 and a beta of 1.70.

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.