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

Shares of Freddie Mac (OTCMKTS:FMCC) dropped 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. 5,852,431 shares traded hands during mid-day trading, an increase of 124% from the average daily volume of 2,617,434 shares. The stock had previously closed at $4.16.

Other research analysts have also issued reports about the company. Wedbush started coverage on Freddie Mac in a research note on Friday, July 31st. They issued an “outperform” rating and a $12.00 target price for the company. 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 Strong Buy rating, one has given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Freddie Mac currently has an average rating of “Hold” and an average target price of $11.12.

Freddie Mac Trading Down 7.1%

The stock has a fifty day moving average price of $5.30 and a 200-day moving average price of $5.79. The firm 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.