Freddie Mac (OTCMKTS:FMCC) Shares Gap Up – Should You Buy?

Freddie Mac (OTCMKTS:FMCC)’s stock price gapped up before the market opened on Thursday . The stock had previously closed at $7.69, but opened at $8.49. Freddie Mac shares last traded at $7.78, with a volume of 1,079,289 shares changing hands.

Analysts Set New Price Targets

A number of brokerages have commented on FMCC. Keefe, Bruyette & Woods decreased 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. Wedbush upgraded 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. BTIG Research started coverage on Freddie Mac in a research note on Monday, January 26th. They set a “buy” rating and a $20.00 price objective for the company. Finally, Zacks Research upgraded Freddie Mac to a “hold” rating in a research note on Monday, December 15th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $16.84.

Freddie Mac Trading Down 0.5%

The stock has a market cap of $4.77 billion, a P/E ratio of -734.00 and a beta of 1.79. The stock’s 50-day moving average is $9.38 and its 200-day moving average is $9.78.

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.