Deprince Race & Zollo Inc. Increases Stock Position in Walker & Dunlop, Inc. $WD

Key Points

• Deprince Race & Zollo increased its stake in Walker & Dunlop by 59.9% in Q4 to 859,072 shares, representing about 2.52% of the company and valued at roughly $51.67M.
• Walker & Dunlop missed Q4 EPS ($0.28 vs. $1.46 expected) and reported slightly below‑forecast revenue, yet the company raised its quarterly dividend to $0.68 (annualized yield ~5.8%), with a high payout ratio (~165.85%).
• Insiders made recent purchases (director Dana Schmaltz bought 1,000 shares; director Ernest Freedman bought 5,000), institutional ownership is high (~80.97%), and analysts have a consensus rating of Moderate Buy with a $81.25 target.

Deprince Race & Zollo Inc. lifted its holdings in shares of Walker & Dunlop, Inc. (NYSE:WD - Free Report) by 59.9% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 859,072 shares of the financial services provider's stock after buying an additional 321,734 shares during the quarter. Walker & Dunlop comprises 1.0% of Deprince Race & Zollo Inc.'s investment portfolio, making the stock its 22nd biggest position. Deprince Race & Zollo Inc. owned about 2.52% of Walker & Dunlop worth $51,673,000 as of its most recent SEC filing.

A number of other institutional investors also recently modified their holdings of the business. Vanguard Group Inc. lifted its stake in shares of Walker & Dunlop by 0.4% during the 3rd quarter. Vanguard Group Inc. now owns 3,743,034 shares of the financial services provider's stock valued at $312,993,000 after buying an additional 16,392 shares in the last quarter. Alliancebernstein L.P. lifted its stake in shares of Walker & Dunlop by 10.4% during the 3rd quarter. Alliancebernstein L.P. now owns 1,198,071 shares of the financial services provider's stock valued at $100,183,000 after buying an additional 113,282 shares in the last quarter. Royce & Associates LP lifted its stake in shares of Walker & Dunlop by 12.6% during the 3rd quarter. Royce & Associates LP now owns 486,093 shares of the financial services provider's stock valued at $40,647,000 after buying an additional 54,344 shares in the last quarter. Tributary Capital Management LLC lifted its stake in shares of Walker & Dunlop by 93.2% during the 3rd quarter. Tributary Capital Management LLC now owns 325,282 shares of the financial services provider's stock valued at $27,200,000 after buying an additional 156,944 shares in the last quarter. Finally, JPMorgan Chase & Co. lifted its stake in shares of Walker & Dunlop by 49.0% during the 3rd quarter. JPMorgan Chase & Co. now owns 303,242 shares of the financial services provider's stock valued at $25,357,000 after buying an additional 99,658 shares in the last quarter. 80.97% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

WD has been the topic of a number of recent research reports. Keefe, Bruyette & Woods dropped their price target on shares of Walker & Dunlop from $80.00 to $65.00 and set an "outperform" rating on the stock in a research note on Friday, February 27th. Jefferies Financial Group initiated coverage on shares of Walker & Dunlop in a research note on Friday, December 19th. They set a "buy" rating and a $75.00 price target on the stock. Finally, Weiss Ratings cut shares of Walker & Dunlop from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, April 6th. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Walker & Dunlop has an average rating of "Moderate Buy" and a consensus price target of $81.25.

Insider Activity at Walker & Dunlop

In other news, Director Dana L. Schmaltz bought 1,000 shares of the stock in a transaction on Wednesday, March 18th. The shares were acquired at an average cost of $45.78 per share, for a total transaction of $45,780.00. Following the purchase, the director directly owned 84,325 shares of the company's stock, valued at $3,860,398.50. This trade represents a 1.20% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Ernest Michael Freedman bought 5,000 shares of the stock in a transaction on Thursday, March 5th. The stock was purchased at an average price of $49.21 per share, for a total transaction of $246,050.00. Following the completion of the purchase, the director directly owned 6,097 shares in the company, valued at approximately $300,033.37. This represents a 455.79% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 4.02% of the company's stock.

Walker & Dunlop Price Performance

NYSE WD opened at $46.84 on Monday. Walker & Dunlop, Inc. has a 1 year low of $42.12 and a 1 year high of $90.00. The stock has a market capitalization of $1.61 billion, a PE ratio of 28.56 and a beta of 1.53. The company's 50 day simple moving average is $51.89 and its two-hundred day simple moving average is $63.29.

Walker & Dunlop (NYSE:WD - Get Free Report) last posted its earnings results on Thursday, February 26th. The financial services provider reported $0.28 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.46 by ($1.18). Walker & Dunlop had a return on equity of 6.81% and a net margin of 4.56%.The firm had revenue of $340.02 million during the quarter, compared to analysts' expectations of $343.66 million. During the same quarter in the prior year, the company earned $1.32 earnings per share. The business's revenue for the quarter was down .4% compared to the same quarter last year. On average, research analysts anticipate that Walker & Dunlop, Inc. will post 4.97 EPS for the current year.

Walker & Dunlop Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 27th. Shareholders of record on Friday, March 13th were paid a $0.68 dividend. The ex-dividend date was Friday, March 13th. This represents a $2.72 annualized dividend and a yield of 5.8%. This is a boost from Walker & Dunlop's previous quarterly dividend of $0.67. Walker & Dunlop's dividend payout ratio is currently 165.85%.

About Walker & Dunlop

Walker & Dunlop is one of the largest providers of commercial real estate finance in the United States, specializing in the origination, servicing and sale of loans secured by multifamily, seniors housing, healthcare, student housing and manufactured housing properties. The firm offers a full suite of debt and equity solutions, including agency financing through Fannie Mae and Freddie Mac, HUD and FHA-insured loans, bridge and construction financing, mezzanine debt, preferred equity, and investment sales advisory.

With roots dating back to 1937 and its headquarters in Bethesda, Maryland, Walker & Dunlop has expanded its platform through both organic growth and strategic acquisitions.

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