Verdence Capital Advisors LLC Sells 21,126 Shares of Walker & Dunlop, Inc. $WD

Key Points

• Verdence Capital Advisors cut its stake in Walker & Dunlop by 39.2% in Q4, selling 21,126 shares and retaining 32,806 shares worth about $1.97 million.
• Walker & Dunlop sharply missed earnings last quarter, reporting EPS of $0.28 versus a $1.46 consensus and revenue of $340.02M (slightly below estimates), with a low net margin of 4.56%.
• Despite insider purchases (Director Dana Schmaltz bought 1,000 shares and Ernest M. Freedman bought 5,000), the company raised its quarterly dividend to $0.68 (5.3% yield) while carrying a high payout ratio of 165.85%.

Verdence Capital Advisors LLC lowered its stake in Walker & Dunlop, Inc. (NYSE:WD - Free Report) by 39.2% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 32,806 shares of the financial services provider's stock after selling 21,126 shares during the period. Verdence Capital Advisors LLC owned approximately 0.10% of Walker & Dunlop worth $1,973,000 as of its most recent filing with the SEC.

A number of other hedge funds also recently modified their holdings of the stock. Arizona State Retirement System increased its position in shares of Walker & Dunlop by 1.4% in the third quarter. Arizona State Retirement System now owns 10,055 shares of the financial services provider's stock worth $841,000 after purchasing an additional 142 shares during the period. GAMMA Investing LLC increased its position in shares of Walker & Dunlop by 65.7% in the third quarter. GAMMA Investing LLC now owns 479 shares of the financial services provider's stock worth $40,000 after purchasing an additional 190 shares during the period. Huntington National Bank increased its position in shares of Walker & Dunlop by 49.6% in the third quarter. Huntington National Bank now owns 585 shares of the financial services provider's stock worth $49,000 after purchasing an additional 194 shares during the period. State of Alaska Department of Revenue increased its position in shares of Walker & Dunlop by 1.1% in the fourth quarter. State of Alaska Department of Revenue now owns 18,787 shares of the financial services provider's stock worth $1,129,000 after purchasing an additional 202 shares during the period. Finally, HighTower Advisors LLC increased its position in shares of Walker & Dunlop by 1.0% in the third quarter. HighTower Advisors LLC now owns 20,245 shares of the financial services provider's stock worth $1,693,000 after purchasing an additional 209 shares during the period. Institutional investors own 80.97% of the company's stock.

Analyst Ratings Changes

A number of brokerages recently commented on WD. Weiss Ratings cut Walker & Dunlop from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, April 6th. Keefe, Bruyette & Woods lowered their price objective on shares of Walker & Dunlop from $80.00 to $65.00 and set an "outperform" rating for the company in a research report on Friday, February 27th. Finally, Stephens initiated coverage on shares of Walker & Dunlop in a research report on Thursday. They set 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 given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $78.80.

Insider Activity at Walker & Dunlop

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

Walker & Dunlop Price Performance

Shares of WD opened at $51.44 on Monday. 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 $1.76 billion, a P/E ratio of 31.36 and a beta of 1.53. The firm has a 50 day simple moving average of $49.29 and a two-hundred day simple moving average of $60.96.

Walker & Dunlop (NYSE:WD - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The financial services provider reported $0.28 EPS for the quarter, missing the consensus estimate of $1.46 by ($1.18). Walker & Dunlop had a net margin of 4.56% and a return on equity of 6.81%. The firm had revenue of $340.02 million for the quarter, compared to analyst estimates of $343.66 million. During the same quarter in the prior year, the firm earned $1.32 earnings per share. The firm's revenue for the quarter was down .4% on a year-over-year basis.

Walker & Dunlop Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 27th. Shareholders of record on Friday, March 13th were given a dividend of $0.68 per share. This is an increase from Walker & Dunlop's previous quarterly dividend of $0.67. This represents a $2.72 annualized dividend and a yield of 5.3%. The ex-dividend date was Friday, March 13th. Walker & Dunlop's dividend payout ratio (DPR) is presently 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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