Vanguard Group Inc. Sells 27,110 Shares of Walker & Dunlop, Inc. $WD

Key Points

• Vanguard trimmed its stake in Walker & Dunlop by 0.7% in the fourth quarter, selling 27,110 shares while still holding 3.72 million shares valued at about $223.5 million.
• Analyst sentiment remains constructive, with several firms maintaining Buy/Overweight views and the stock carrying a consensus “Moderate Buy” rating and average target price of $79.20.
• Recent company results were mixed: Walker & Dunlop missed expectations in its latest reported quarter, but it also announced a $0.68 quarterly dividend and later highlighted stronger Q1 earnings and revenue growth in its news summary.

Vanguard Group Inc. lowered its holdings in Walker & Dunlop, Inc. (NYSE:WD - Free Report) by 0.7% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,715,924 shares of the financial services provider's stock after selling 27,110 shares during the period. Vanguard Group Inc. owned about 10.91% of Walker & Dunlop worth $223,513,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also added to or reduced their stakes in the business. Alliancebernstein L.P. grew its position in Walker & Dunlop by 10.4% in the third quarter. Alliancebernstein L.P. now owns 1,198,071 shares of the financial services provider's stock valued at $100,183,000 after purchasing an additional 113,282 shares in the last quarter. Deprince Race & Zollo Inc. grew its stake in Walker & Dunlop by 59.9% in the fourth quarter. Deprince Race & Zollo Inc. now owns 859,072 shares of the financial services provider's stock valued at $51,673,000 after purchasing an additional 321,734 shares in the last quarter. Royce & Associates LP grew its stake in Walker & Dunlop by 12.6% in the third quarter. Royce & Associates LP now owns 486,093 shares of the financial services provider's stock valued at $40,647,000 after purchasing an additional 54,344 shares in the last quarter. JPMorgan Chase & Co. grew its stake in Walker & Dunlop by 49.0% in the third quarter. JPMorgan Chase & Co. now owns 303,242 shares of the financial services provider's stock valued at $25,357,000 after purchasing an additional 99,658 shares in the last quarter. Finally, Two Sigma Investments LP grew its stake in Walker & Dunlop by 238.2% in the third quarter. Two Sigma Investments LP now owns 284,067 shares of the financial services provider's stock valued at $23,754,000 after purchasing an additional 200,074 shares in the last quarter. Institutional investors own 80.97% of the company's stock.

Wall Street Analysts Forecast Growth

WD has been the subject of a number of analyst reports. Keefe, Bruyette & Woods raised their price target on Walker & Dunlop from $65.00 to $67.00 and gave the company an "outperform" rating in a research note on Friday. Wall Street Zen upgraded Walker & Dunlop from a "sell" rating to a "hold" rating in a research note on Saturday. Weiss Ratings downgraded Walker & Dunlop from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, April 6th. Finally, Stephens assumed coverage on shares of Walker & Dunlop in a research report on Thursday, April 23rd. They issued an "overweight" rating and a $69.00 price objective for the company. Five equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Walker & Dunlop presently has an average rating of "Moderate Buy" and an average target price of $79.20.

Walker & Dunlop Price Performance

Shares of WD opened at $54.57 on Friday. The firm has a 50-day moving average of $47.73 and a 200-day moving average of $59.48. Walker & Dunlop, Inc. has a one year low of $42.12 and a one year high of $90.00. The company has a market cap of $1.87 billion, a PE ratio of 27.01 and a beta of 1.52.

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 for the quarter, missing analysts' consensus estimates of $1.46 by ($1.18). The business had revenue of $340.02 million for the quarter, compared to analyst estimates of $343.66 million. Walker & Dunlop had a return on equity of 7.18% and a net margin of 5.29%.The firm's revenue was down .4% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.32 earnings per share.

Walker & Dunlop Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Investors of record on Thursday, May 21st will be issued a dividend of $0.68 per share. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $2.72 dividend on an annualized basis and a dividend yield of 5.0%. Walker & Dunlop's payout ratio is presently 134.65%.

Walker & Dunlop News Summary

Here are the key news stories impacting Walker & Dunlop this week:

• Positive Sentiment: Walker & Dunlop reported Q1 earnings of $1.02 per share, far above estimates, with revenue of $301.33 million also topping expectations and rising 26.9% year over year. MarketBeat earnings report
• Positive Sentiment: Keefe, Bruyette & Woods raised its price target on Walker & Dunlop to $67 from $65 and reiterated an outperform rating, signaling continued analyst confidence. Benzinga article
• Positive Sentiment: The company announced a quarterly dividend of $0.68 per share, which supports the stock’s appeal for income-focused investors.
• Neutral Sentiment: Management struck an optimistic tone on the earnings call, and a reported surge in call volume suggests investors are actively re-evaluating the name after the results. TipRanks earnings call article
• Neutral Sentiment: Additional coverage of the quarter and transcript publication may keep attention on the stock, but these items are largely follow-up items to the earnings release. Seeking Alpha transcript

Insider Buying and Selling

In other Walker & Dunlop news, Director Dana L. Schmaltz bought 1,000 shares of the firm's stock in a transaction that occurred on Wednesday, March 18th. The shares were acquired at an average cost of $45.78 per share, with a total value of $45,780.00. Following the acquisition, the director owned 84,325 shares of the company's stock, valued at $3,860,398.50. The trade was a 1.20% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Ernest Michael Freedman bought 5,000 shares of the firm's stock in a transaction that occurred on Thursday, March 5th. The shares were acquired at an average cost of $49.21 per share, for a total transaction of $246,050.00. Following the completion of the acquisition, the director directly owned 6,097 shares in the company, valued at $300,033.37. The trade was a 455.79% increase in their position. The SEC filing for this purchase provides additional information. 4.02% of the stock is currently owned by insiders.

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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