Freddie Mac (OTCMKTS:FMCC) Stock Price Up 13.5% - What's Next?

Key Points

• Freddie Mac shares jumped 13.5% to $4.13, despite trading volume falling 26% below its average daily level.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $8.38; targets range from $3.50 to $6.00 among recently active firms.
• The company reported quarterly earnings of $0.01 per share, while its stock carries a high P/E ratio of 419.42 and has remained below both its 50-day and 200-day moving averages.

Freddie Mac (OTCMKTS:FMCC - Get Free Report) shares traded up 13.5% on Thursday. The stock traded as high as $4.13 and last traded at $4.13. 2,061,268 shares changed hands during trading, a decline of 26% from the average daily volume of 2,777,854 shares. The stock had previously closed at $3.64.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on FMCC. Mizuho set a $4.00 price target on shares of Freddie Mac and gave the stock a "neutral" rating in a research report on Monday, October 12th. Keefe, Bruyette & Woods cut their target price on Freddie Mac from $6.50 to $3.50 and set an "underperform" rating for the company in a research note on Monday, September 28th. Finally, Wedbush began coverage on shares of Freddie Mac in a research report on Thursday, October 22nd. They set an "outperform" rating and a $6.00 price target on the stock. One analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $8.38.

Freddie Mac Price Performance

The company has a 50-day simple moving average of $4.44 and a 200-day simple moving average of $5.86. The stock has a market cap of $2.72 billion, a PE ratio of 419.42 and a beta of 1.74.

Freddie Mac (OTCMKTS:FMCC - Get Free Report) last posted its earnings results on Thursday, October 29th. The company reported $0.01 earnings per share for the quarter. Freddie Mac had a negative return on equity of 90.29% and a net margin of 9.58%.

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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