Freddie Mac (OTCMKTS:FMCC) Shares Pass Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• Freddie Mac shares recently crossed below their 200-day moving average
• Analyst views are mixed but the consensus is a "Moderate Buy" with an average price target of $16.84, while individual targets range from $9 (Keefe, Bruyette & Woods) to $20 (BTIG) and include recent upgrades from Wedbush and BTIG.
• The company has a market capitalization of $3.57 billion and a negative P/E of -274.50, indicating current losses despite a beta of 1.83.

Freddie Mac (OTCMKTS:FMCC - Get Free Report) shares crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $9.61 and traded as low as $5.25. Freddie Mac shares last traded at $5.49, with a volume of 2,355,021 shares trading hands.

Analyst Ratings Changes

FMCC has been the subject of a number of research reports. Wedbush raised Freddie Mac from an "underperform" rating to an "outperform" rating and set a $13.35 target price for the company in a research note on Friday, December 12th. BTIG Research began 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. Zacks Research upgraded shares of Freddie Mac to a "hold" rating in a report on Monday, December 15th. Finally, Keefe, Bruyette & Woods lowered their price objective on shares of Freddie Mac from $11.00 to $9.00 and set an "underperform" rating for the company in a research report on Thursday, December 18th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Freddie Mac currently has an average rating of "Moderate Buy" and an average price target of $16.84.

Freddie Mac Stock Up 3.2%

The stock has a fifty day moving average of $7.64 and a 200-day moving average of $9.61. The firm has a market capitalization of $3.57 billion, a P/E ratio of -274.50 and a beta of 1.83.

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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