Walker & Dunlop (NYSE:WD) Reaches New 12-Month Low - Here's What Happened

Key Points

• Walker & Dunlop shares hit a new 52-week low, falling to $38.78 during trading, below the previous close of $40.11. The stock trades below both its 50-day and 200-day moving averages.
• Analyst sentiment remains generally positive, with five Buy ratings and one Sell rating; however, several firms recently lowered their price targets. The consensus rating is “Moderate Buy,” with a target price of $64.
• The company exceeded quarterly earnings expectations with EPS of $1.19 versus a $0.90 consensus estimate, but revenue declined 3.9% year over year. Walker & Dunlop also pays a quarterly dividend of $0.68, representing a 6.9% yield.

Walker & Dunlop, Inc. (NYSE:WD - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $38.78 and last traded at $38.5350, with a volume of 450367 shares trading hands. The stock had previously closed at $40.11.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on WD shares. Wall Street Zen upgraded Walker & Dunlop from a "sell" rating to a "hold" rating in a research report on Saturday, August 29th. Keefe, Bruyette & Woods decreased their target price on Walker & Dunlop from $63.00 to $57.00 and set an "outperform" rating for the company in a research report on Friday, August 7th. Citigroup restated a "market outperform" rating on shares of Walker & Dunlop in a research note on Tuesday, August 18th. Weiss Ratings lowered Walker & Dunlop from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, August 18th. Finally, Citizens Jmp reduced their price objective on Walker & Dunlop from $70.00 to $55.00 and set a "market outperform" rating for the company in a research note on Tuesday, August 18th. Five analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $64.00.

Walker & Dunlop Price Performance

The company has a 50 day moving average price of $44.84 and a 200 day moving average price of $47.90. The firm has a market cap of $1.35 billion, a PE ratio of 34.87 and a beta of 1.45.

Walker & Dunlop (NYSE:WD - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The financial services provider reported $1.19 earnings per share for the quarter, topping the consensus estimate of $0.90 by $0.29. The firm had revenue of $306.69 million during the quarter, compared to the consensus estimate of $337.37 million. Walker & Dunlop had a return on equity of 7.25% and a net margin of 2.94%.The company's revenue for the quarter was down 3.9% on a year-over-year basis. During the same period last year, the company earned $1.15 earnings per share.

Walker & Dunlop Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Thursday, August 20th were paid a $0.68 dividend. This represents a $2.72 annualized dividend and a dividend yield of 6.9%. The ex-dividend date was Thursday, August 20th. Walker & Dunlop's dividend payout ratio (DPR) is 242.86%.

Institutional Trading of Walker & Dunlop

Several hedge funds and other institutional investors have recently made changes to their positions in the company. ProShare Advisors LLC lifted its stake in shares of Walker & Dunlop by 3.1% in the fourth quarter. ProShare Advisors LLC now owns 6,425 shares of the financial services provider's stock worth $386,000 after acquiring an additional 192 shares in the last quarter. Huntington National Bank boosted its holdings in Walker & Dunlop by 47.9% in the fourth quarter. Huntington National Bank now owns 865 shares of the financial services provider's stock valued at $52,000 after purchasing an additional 280 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in Walker & Dunlop by 107.9% during the 1st quarter. EverSource Wealth Advisors LLC now owns 580 shares of the financial services provider's stock valued at $26,000 after purchasing an additional 301 shares in the last quarter. IFP Advisors Inc grew its stake in Walker & Dunlop by 223.8% during the 2nd quarter. IFP Advisors Inc now owns 489 shares of the financial services provider's stock valued at $27,000 after purchasing an additional 338 shares in the last quarter. Finally, Thornburg Investment Management Inc. increased its holdings in Walker & Dunlop by 0.3% during the 4th quarter. Thornburg Investment Management Inc. now owns 160,103 shares of the financial services provider's stock worth $9,630,000 after purchasing an additional 462 shares during the last quarter. Hedge funds and other institutional investors own 80.97% of the company's stock.

Walker & Dunlop Company Profile

Walker & Dunlop, Inc is a commercial real estate finance and advisory firm headquartered in Bethesda, Maryland. The company provides financing, investment sales, capital markets, investment banking, valuation, research, and property brokerage services to owners, investors, developers, and other participants in the commercial real estate industry.

Its financing activities include arranging debt and equity for multifamily, office, industrial, retail, hospitality, and other commercial properties.

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