Freddie Mac (OTCMKTS:FMCC) Stock Price Up 10.2% – Should You Buy?

Freddie Mac (OTCMKTS:FMCC)’s share price rose 10.2% during mid-day trading on Wednesday . The company traded as high as $6.25 and last traded at $6.19. Approximately 1,949,269 shares traded hands during trading, a decline of 37% from the average daily volume of 3,082,233 shares. The stock had previously closed at $5.6170.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Keefe, Bruyette & Woods dropped their target price on shares of Freddie Mac from $9.00 to $8.50 and set an “underperform” rating for the company 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 research note 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 equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $15.17.

Freddie Mac Stock Up 10.2%

The stock’s fifty day simple moving average is $6.45 and its two-hundred day simple moving average is $7.27.

Freddie Mac (OTCMKTS:FMCC) last released 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 during the quarter, compared to analyst estimates of $5.61 billion. As a group, equities 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.