Freddie Mac (OTCMKTS:FMCC) Shares Down 4.5% – Here’s Why

Freddie Mac (OTCMKTS:FMCC)’s share price was down 4.5% during trading on Monday. The company traded as low as $3.25 and last traded at $3.2740. 244,261 shares changed hands during mid-day trading, a decline of 91% from the average daily volume of 2,705,213 shares. The stock had previously closed at $3.43.

Analysts Set New Price Targets

FMCC has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods reduced their price objective on shares of Freddie Mac from $6.50 to $3.50 and set an “underperform” rating for the company in a research report on Monday, September 28th. Wedbush initiated coverage on Freddie Mac in a research report on Friday, July 31st. They set an “outperform” rating and a $12.00 price objective on the stock. Finally, Mizuho set a $4.00 target price on shares of Freddie Mac and gave the company a “neutral” rating in a report on Monday, October 12th. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $9.88.

Freddie Mac Stock Down 6.4%

The firm has a market cap of $2.09 billion, a price-to-earnings ratio of 321.32 and a beta of 1.74. The company’s 50-day moving average price is $4.73 and its 200-day moving average price is $5.65.

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.