Freddie Mac (OTCMKTS:FMCC) Trading Down 7.2% – Here’s Why

Freddie Mac (OTCMKTS:FMCC) fell 7.2% during trading on Friday . The stock traded as low as $5.95 and last traded at $6.05. Approximately 828,131 shares were traded during mid-day trading, a decline of 73% from the average session volume of 3,095,516 shares. The stock had previously closed at $6.52.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on FMCC. Keefe, Bruyette & Woods cut their target price 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 assumed coverage on shares of Freddie Mac in a report on Monday, May 4th. They issued an “outperform” rating and a $9.00 price objective for the company. Finally, BTIG Research cut Freddie Mac from a “buy” rating to a “neutral” rating in a research report on Tuesday, June 16th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $15.17.

Freddie Mac Price Performance

The stock’s 50-day moving average price is $6.42 and its two-hundred day moving average price is $7.21.

Freddie Mac (OTCMKTS:FMCC) last issued its quarterly earnings results on Thursday, April 30th. The company reported $0.01 earnings per share (EPS) 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 during the quarter, compared to analysts’ expectations of $5.61 billion. As a group, research analysts anticipate that Freddie Mac will post 0.01 earnings per share 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.