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

Freddie Mac (OTCMKTS:FMCC) shares gapped up prior to trading 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 trading hands.

Analysts Set New Price Targets

A number of brokerages recently weighed in on FMCC. Keefe, Bruyette & Woods reduced their price target 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. Mizuho began coverage on shares of Freddie Mac in a research report on Monday, May 4th. They issued an “outperform” rating and a $9.00 price target for the company. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $15.17.

Freddie Mac Stock Down 0.7%

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

Freddie Mac (OTCMKTS:FMCC) last issued its quarterly earnings data on Thursday, April 30th. The company reported $0.01 earnings per share for the quarter. Freddie Mac had a negative return on equity of 65.39% and a net margin of 8.61%.The company had revenue of $6.13 billion during the quarter, compared to analysts’ expectations of $5.61 billion. As a group, equities research analysts expect that Freddie Mac will post 0.01 EPS for the current year.

About Freddie Mac

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.