Freddie Mac (OTCMKTS:FMCC) Stock Price Down 24.4% - Time to Sell?

Key Points

• Freddie Mac shares fell 24.4% on Wednesday, closing at $3.78 versus the prior close of $5.00; trading volume was about 30% below its average.
• Analyst views are mixed: MarketBeat reports an overall Hold rating and an average price target of $8.38, with recent recommendations ranging from strong buy to underperform.
• For its latest quarter, Freddie Mac reported earnings of $0.01 per share and revenue of $6.81 billion, above analyst revenue estimates of $6.19 billion; return on equity was negative 121.95%.

Freddie Mac (OTCMKTS:FMCC - Get Free Report)'s share price dropped 24.4% during trading on Wednesday. The stock traded as low as $3.70 and last traded at $3.78. Approximately 1,962,501 shares traded hands during trading, a decline of 30% from the average daily volume of 2,814,477 shares. The stock had previously closed at $5.00.

Analysts Set New Price Targets

Several analysts recently weighed in on the stock. Wedbush began coverage on shares of Freddie Mac in a research report on Thursday, October 22nd. They issued an "outperform" rating and a $6.00 price objective on the stock. Zacks Research raised Freddie Mac from a "hold" rating to a "strong-buy" rating in a report on Monday. Keefe, Bruyette & Woods decreased their price objective on Freddie Mac from $6.50 to $3.50 and set an "underperform" rating for the company in a report on Monday, September 28th. Finally, Mizuho cut Freddie Mac from an "outperform" rating to a "neutral" rating and set a $4.00 target price on the stock. in a research report on Monday, October 12th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $8.38.

Freddie Mac Trading Down 11.0%

The business's 50-day simple moving average is $4.35 and its 200 day simple moving average is $5.75. The company has a market capitalization of $2.89 billion, a P/E ratio of 222.61 and a beta of 1.75.

Freddie Mac (OTCMKTS:FMCC - Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The company reported $0.01 EPS for the quarter. Freddie Mac had a net margin of 9.73% and a negative return on equity of 121.95%. The business had revenue of $6.81 billion for the quarter, compared to analyst estimates of $6.19 billion. As a group, sell-side analysts predict that Freddie Mac will post 0.02 EPS for the current fiscal year.

About Freddie Mac

Freddie Mac, formally known as the Federal Home Loan Mortgage Corporation, is a government-sponsored enterprise focused on supporting liquidity, stability and affordability in the U.S. housing market. It operates primarily in the secondary mortgage market rather than making most home loans directly to consumers.

The company purchases residential mortgage loans from approved lenders, providing those institutions with funds to make additional loans. Freddie Mac also pools eligible mortgages into securities that it guarantees and sells to investors.

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