Freddie Mac (OTCMKTS:FMCC) Shares Gap Down – Here’s Why

Freddie Mac (OTCMKTS:FMCC) shares gapped down prior to trading on Wednesday . The stock had previously closed at $5.48, but opened at $5.30. Freddie Mac shares last traded at $5.40, with a volume of 129,348 shares.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the company. Keefe, Bruyette & Woods dropped their price target on Freddie Mac from $9.00 to $8.50 and set an “underperform” rating on the stock in a research report on Monday, April 20th. BTIG Research downgraded shares of Freddie Mac from a “buy” rating to a “neutral” rating in a report on Tuesday, June 16th. Finally, Mizuho initiated coverage on shares of Freddie Mac in a report on Monday, May 4th. They issued an “outperform” rating and a $9.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Freddie Mac presently has a consensus rating of “Moderate Buy” and an average target price of $15.17.

Freddie Mac Stock Performance

The firm’s 50 day moving average is $6.17 and its two-hundred day moving average is $6.78.

Freddie Mac (OTCMKTS:FMCC) last issued its earnings results on Thursday, April 30th. The company reported $0.01 earnings per share (EPS) for the quarter. Freddie Mac had a net margin of 8.61% and a negative return on equity of 65.39%. The firm had revenue of $6.13 billion for the quarter, compared to analysts’ expectations of $5.61 billion. Analysts expect that Freddie Mac will post 0.01 EPS for the current year.

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.