Freddie Mac (OTCMKTS:FMCC) Trading Up 9.5% - Here's Why

Key Points

• Freddie Mac's stock rose 9.5% mid-day to a high of $7.12 (last $7.01) on Wednesday, with about 2.39 million shares traded—roughly 30% below its average daily volume.
• Analyst views are mixed but the consensus is a Moderate Buy with a consensus price target of $16.84; notable calls include BTIG's $20 buy and Keefe, Bruyette & Woods' cut to a $9 underperform.
• Fundamentals show a market cap of $4.45 billion and a negative P/E of -342, with the stock above its 50‑day SMA ($6.42) but below its 200‑day SMA ($9.01).

Freddie Mac (OTCMKTS:FMCC - Get Free Report)'s stock price rose 9.5% during mid-day trading on Wednesday . The stock traded as high as $7.12 and last traded at $7.01. Approximately 2,391,543 shares changed hands during mid-day trading, a decline of 30% from the average daily volume of 3,395,958 shares. The stock had previously closed at $6.40.

Analyst Ratings Changes

A number of brokerages have issued reports on FMCC. Keefe, Bruyette & Woods cut their target price 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 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 price objective for the company in a research report on Friday, December 12th. Finally, BTIG Research initiated coverage on shares of Freddie Mac in a research note on Monday, January 26th. They set a "buy" rating and a $20.00 target price on the stock. One 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 given a Sell rating to the stock. Based on data from MarketBeat, Freddie Mac currently has a consensus rating of "Moderate Buy" and a consensus price target of $16.84.

Freddie Mac Price Performance

The company has a market cap of $4.45 billion, a price-to-earnings ratio of -342.00 and a beta of 1.83. The firm has a 50 day simple moving average of $6.42 and a 200-day simple moving average of $9.01.

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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