Freddie Mac (OTCMKTS:FMCC) Shares Up 11.3% – Should You Buy?

Shares of Freddie Mac (OTCMKTS:FMCC) rose 11.3% during mid-day trading on Thursday. The company traded as high as $3.28 and last traded at $3.25. 5,038,069 shares were traded during trading, an increase of 88% from the average daily volume of 2,686,271 shares. The stock had previously closed at $2.92.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on FMCC. Wedbush began coverage on Freddie Mac in a research note on Friday, July 31st. They set an “outperform” rating and a $12.00 price target on the stock. Keefe, Bruyette & Woods dropped their price objective on Freddie Mac from $6.50 to $3.50 and set an “underperform” rating for the company in a research note on Monday, September 28th. Finally, Mizuho set a $4.00 price objective on Freddie Mac and gave the company a “neutral” rating in a research note on Monday. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Freddie Mac presently has an average rating of “Hold” and an average target price of $9.88.

Freddie Mac Trading Up 11.3%

The company has a market cap of $2.11 billion, a PE ratio of 325.33 and a beta of 1.74. The business has a 50 day simple moving average of $4.82 and a two-hundred day simple moving average of $5.67.

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.