Freddie Mac (OTCMKTS:FMCC) Shares Down 5.2% - Should You Sell?

Key Points

• Freddie Mac's stock price dropped by 5.2% during mid-day trading on Monday, closing at $12.80, significantly lower than its previous close of $13.50.
• Deutsche Bank has initiated coverage on Freddie Mac with a "buy" rating and a target price of $25.00, while the stock currently has an average rating of "Hold" and an average target price of $14.75.
• In its latest quarterly earnings report, Freddie Mac reported a net margin of 9.04% and a negative return on equity of 44.33%, with earnings per share of ($0.01).

Freddie Mac (OTCMKTS:FMCC - Get Free Report) shares traded down 5.2% during mid-day trading on Monday . The company traded as low as $12.63 and last traded at $12.80. 4,138,817 shares changed hands during trading, a decline of 7% from the average session volume of 4,462,491 shares. The stock had previously closed at $13.50.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on FMCC shares. Deutsche Bank Aktiengesellschaft assumed coverage on Freddie Mac in a research report on Thursday, September 11th. They issued a "buy" rating and a $25.00 target price for the company. Keefe, Bruyette & Woods increased their target price on Freddie Mac from $4.50 to $11.00 and gave the stock an "underperform" rating in a research note on Thursday. One investment analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Freddie Mac currently has a consensus rating of "Hold" and an average target price of $18.00.

Freddie Mac Stock Performance

The stock has a market capitalization of $8.44 billion, a price-to-earnings ratio of -432.67 and a beta of 2.10. The firm has a fifty day moving average of $9.00 and a 200-day moving average of $7.16.

Freddie Mac (OTCMKTS:FMCC - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The company reported ($0.01) EPS for the quarter. Freddie Mac had a negative return on equity of 44.33% and a net margin of 9.04%.The company had revenue of $5.92 billion for the quarter.

Freddie Mac Company Profile

Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit and market risk, as well as manages mortgage-related investments portfolio, single-family securitization activities, and treasury functions.