Freddie Mac (OTCMKTS:FMCC) Stock Price Down 24.4% – What’s Next?

Freddie Mac (OTCMKTS:FMCC)’s stock price was down 24.4% during mid-day trading on Wednesday. The stock traded as low as $3.70 and last traded at $3.78. Approximately 1,962,501 shares changed 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.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on FMCC. Zacks Research raised shares of Freddie Mac from a “hold” rating to a “strong-buy” rating in a report on Monday. Mizuho downgraded Freddie Mac from an “outperform” rating to a “neutral” rating and set a $4.00 price objective on the stock. in a research note on Monday, October 12th. Wedbush started coverage on Freddie Mac in a research report on Thursday, October 22nd. They set an “outperform” rating and a $6.00 price objective for the company. Finally, Keefe, Bruyette & Woods dropped their price target on Freddie Mac from $6.50 to $3.50 and set an “underperform” rating on the stock in a research note on Monday, September 28th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Freddie Mac currently has a consensus rating of “Hold” and an average target price of $8.38.

Freddie Mac Price Performance

The company has a 50-day moving average of $4.35 and a 200 day moving average of $5.75. The company has a market cap of $2.89 billion, a PE ratio of 222.61 and a beta of 1.75.

Freddie Mac (OTCMKTS:FMCC) last issued its quarterly earnings results on Thursday, October 29th. The company reported $0.01 EPS for the quarter. Freddie Mac had a negative return on equity of 121.95% and a net margin of 9.73%. The company had revenue of $6.81 billion during the quarter, compared to analysts’ expectations of $6.19 billion. Equities research analysts expect that Freddie Mac will post 0.02 EPS for the current 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.