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

Freddie Mac (OTCMKTS:FMCC)’s share price gapped up before the market opened on Friday . The stock had previously closed at $6.06, but opened at $6.46. Freddie Mac shares last traded at $6.28, with a volume of 770,935 shares traded.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the company. Mizuho assumed coverage on Freddie Mac in a research report on Monday, May 4th. They set an “outperform” rating and a $9.00 price objective for the company. Keefe, Bruyette & Woods lowered their price objective on Freddie Mac from $9.00 to $8.50 and set an “underperform” rating for the company in a research report on Monday, April 20th. Two research analysts have 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. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $15.17.

Freddie Mac Stock Performance

The firm has a 50 day moving average of $6.46 and a two-hundred day moving average of $7.60.

Freddie Mac (OTCMKTS:FMCC) last posted its earnings results on Thursday, April 30th. The company reported $0.01 earnings per share for the quarter. The firm had revenue of $6.13 billion during the quarter, compared to analysts’ expectations of $5.61 billion. Freddie Mac had a negative return on equity of 65.39% and a net margin of 8.61%. As a group, analysts forecast 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.