Freddie Mac (OTCMKTS:FMCC) Shares Down 11.7% Following Analyst Downgrade

Freddie Mac (OTCMKTS:FMCC) dropped 11.7% on Monday after Mizuho downgraded the stock from an outperform rating to a neutral rating. Mizuho now has a $4.00 price target on the stock. Freddie Mac traded as low as $3.21 and last traded at $3.25. 1,283,618 shares changed hands during trading, a decline of 51% from the average daily volume of 2,614,423 shares. The stock had previously closed at $3.68.

A number of other research firms have also issued reports on FMCC. Keefe, Bruyette & Woods dropped their price target on Freddie Mac from $6.50 to $3.50 and set an “underperform” rating for the company in a research report on Monday, September 28th. Wedbush began coverage on Freddie Mac in a research report on Friday, July 31st. They issued an “outperform” rating and a $12.00 target price on the stock. Finally, BTIG Research downgraded shares of Freddie Mac from a “buy” rating to a “neutral” rating in a research note on Tuesday, June 16th. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $9.88.

Freddie Mac Price Performance

The business’s fifty day moving average is $4.86 and its 200 day moving average is $5.69. The stock has a market cap of $2.05 billion, a PE ratio of 315.00 and a beta of 1.74.

Freddie Mac Company Profile

Freddie Mac, formally known as the Federal Home Loan Mortgage Corporation, is a U.S. government-sponsored enterprise that supports liquidity, stability and affordability in the residential mortgage market. Chartered by Congress in 1970, the company operates in the secondary mortgage market rather than primarily originating mortgages directly with individual borrowers.

Freddie Mac purchases qualifying single-family and multifamily mortgages from approved lenders, providing those institutions with funds to make additional loans.