Freddie Mac (OTCMKTS:FMCC) Shares Gap Up - Time to Buy?

Key Points

• Shares gapped up pre-market, opening at $6.93 after a $6.45 close and last trading at $7.05 on about 2.48 million shares traded.
• Analyst views are mixed but the consensus is a Moderate Buy with a consensus target price of $16.84 (1 Strong Buy, 2 Buy, 1 Hold, 1 Sell).
• The company has a market cap of $4.56 billion, a negative P/E (−350.5) and a 50-day/200-day moving average of $6.44/$9.06, indicating recent volatility.

Freddie Mac (OTCMKTS:FMCC - Get Free Report) shares gapped up prior to trading on Tuesday . The stock had previously closed at $6.45, but opened at $6.93. Freddie Mac shares last traded at $7.05, with a volume of 2,482,403 shares traded.

Analysts Set New Price Targets

A number of research analysts have issued reports on FMCC shares. Keefe, Bruyette & Woods lowered their price objective on Freddie Mac from $11.00 to $9.00 and set an "underperform" rating for the company in a research note on Thursday, December 18th. Zacks Research raised Freddie Mac to a "hold" rating in a research report on Monday, December 15th. BTIG Research started coverage on shares of Freddie Mac in a research note on Monday, January 26th. They issued a "buy" rating and a $20.00 price target on the stock. Finally, Wedbush raised shares of Freddie Mac from an "underperform" rating to an "outperform" rating and set a $13.35 price objective on the stock in a research report on Friday, December 12th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Freddie Mac currently has a consensus rating of "Moderate Buy" and a consensus target price of $16.84.

Freddie Mac Price Performance

The company has a market capitalization of $4.56 billion, a PE ratio of -350.50 and a beta of 1.83. The firm has a 50-day moving average of $6.44 and a 200 day moving average of $9.06.

Freddie Mac Company Profile

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.

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