Freddie Mac is trading 5% lower at $3.80 after Keefe, Bruyette & Woods cut its price target to $3.50 from $6.50 while maintaining an Underperform rating.
- KBW cited weaker confidence in privatization and potential dilution of common shares if Treasury-held preferred shares convert.
- Shares closed at $4.00 on September 28, after several declines in the preceding week. The broader market is modestly higher, so it does not appear to explain the drop.