Freddie Mac (OTCMKTS:FMCC) Trading Down 7.2% - Time to Sell?

Key Points

• Freddie Mac shares fell 7.2% on Tuesday to about $4.80 (intraday low $4.70) on volume of 3.11 million shares, roughly an 18% increase versus the average session volume.
• Analysts hold a consensus rating of "Moderate Buy" with an average price target of $16.84, though individual views vary widely — recent targets range from $9 (KBW) to $20 (BTIG) and ratings span Strong Buy to Sell.
• The company has a market cap of $3.25 billion and a PE ratio of -250.30, and the stock is trading well below its 50-day ($7.34) and 200-day ($9.53) moving averages, signaling continued weakness.

Freddie Mac (OTCMKTS:FMCC - Get Free Report)'s stock price traded down 7.2% on Tuesday . The stock traded as low as $4.70 and last traded at $4.80. 3,114,174 shares changed hands during trading, an increase of 18% from the average session volume of 2,633,611 shares. The stock had previously closed at $5.17.

Wall Street Analyst Weigh In

A number of analysts recently commented on the stock. Zacks Research upgraded shares of Freddie Mac to a "hold" rating in a report on Monday, December 15th. Wedbush upgraded shares of Freddie Mac from an "underperform" rating to an "outperform" rating and set a $13.35 target price for the company in a report on Friday, December 12th. BTIG Research assumed coverage on shares of Freddie Mac in a research report on Monday, January 26th. They issued a "buy" rating and a $20.00 price target on the stock. Finally, Keefe, Bruyette & Woods dropped their price target on Freddie Mac from $11.00 to $9.00 and set an "underperform" rating on the stock in a report on Thursday, December 18th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Freddie Mac presently has a consensus rating of "Moderate Buy" and an average price target of $16.84.

Freddie Mac Price Performance

The firm has a market cap of $3.25 billion, a PE ratio of -250.30 and a beta of 1.83. The business has a fifty day moving average price of $7.34 and a two-hundred day moving average price of $9.53.

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.

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