Freddie Mac (OTCMKTS:FMCC) Stock Falls 11.7% Following Analyst Downgrade

Freddie Mac (OTCMKTS:FMCC)’s stock price dropped 11.7% during trading on Monday after Mizuho downgraded the stock from an outperform rating to a neutral rating. Mizuho now has a $4.00 price target on the stock. Freddie Mac traded as low as $3.21 and last traded at $3.25. 1,283,618 shares changed hands during mid-day trading, a decline of 51% from the average session volume of 2,614,423 shares. The stock had previously closed at $3.68.

Other analysts have also recently issued reports about the company. Wedbush started coverage on Freddie Mac in a research report on Friday, July 31st. They issued an “outperform” rating and a $12.00 price target on the stock. Keefe, Bruyette & Woods reduced their price objective on Freddie Mac from $6.50 to $3.50 and set an “underperform” rating for the company in a research report on Monday, September 28th. Finally, BTIG Research cut Freddie Mac from a “buy” rating to a “neutral” rating in a research note on Tuesday, June 16th. One research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Freddie Mac presently has a consensus rating of “Hold” and a consensus price target of $9.88.

Freddie Mac Price Performance

The stock’s fifty day moving average price is $4.86 and its 200 day moving average price is $5.69. The stock has a market cap of $2.05 billion, a PE ratio of 315.00 and a beta of 1.74.

About Freddie Mac

Freddie Mac, formally known as the Federal Home Loan Mortgage Corporation, is a U.S. government-sponsored enterprise that supports liquidity, stability and affordability in the residential mortgage market. Chartered by Congress in 1970, the company operates in the secondary mortgage market rather than primarily originating mortgages directly with individual borrowers.

Freddie Mac purchases qualifying single-family and multifamily mortgages from approved lenders, providing those institutions with funds to make additional loans.