Freddie Mac (OTCMKTS:FMCC) Stock Falls 7.1% After Analyst Downgrade

Shares of Freddie Mac (OTCMKTS:FMCC) were down 7.1% during trading on Monday after Keefe, Bruyette & Woods lowered their price target on the stock from $6.50 to $3.50. Keefe, Bruyette & Woods currently has an underperform rating on the stock. Freddie Mac traded as low as $3.85 and last traded at $3.8635. Approximately 5,852,431 shares changed hands during mid-day trading, an increase of 124% from the average session volume of 2,617,434 shares. The stock had previously closed at $4.16.

FMCC has been the topic of several other research reports. Wedbush began coverage on shares of Freddie Mac in a report on Friday, July 31st. They issued an “outperform” rating and a $12.00 target price on the stock. BTIG Research cut shares of Freddie Mac from a “buy” rating to a “neutral” rating in a report on Tuesday, June 16th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Freddie Mac has a consensus rating of “Hold” and a consensus target price of $11.12.

Freddie Mac Stock Performance

The company’s 50 day moving average is $5.30 and its 200 day moving average is $5.79. The stock has a market capitalization of $2.51 billion, a price-to-earnings ratio of 386.74 and a beta of 1.73.

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. The company operates in the secondary mortgage market, purchasing qualifying mortgage loans from approved lenders and providing lenders with funds that can be used to make additional home loans.

Freddie Mac finances these activities primarily by pooling mortgages into mortgage-backed securities, including its mortgage participation certificates, and guaranteeing the timely payment of principal and interest to investors.