Walker & Dunlop (NYSE:WD) Reaches New 52-Week Low Following Analyst Downgrade

Key Points

• Walker & Dunlop shares fell to a new 52-week low of $32.36 after Keefe, Bruyette & Woods cut its price target from $57 to $45, though it maintained an outperform rating.
• Analyst sentiment remains broadly positive, with five Buy ratings and one Sell rating; the stock has a “Moderate Buy” consensus and an average price target of $61.
• The company beat quarterly EPS expectations ($1.19 versus $0.90) but reported revenue below forecasts and down 3.9% year over year. It also pays a $0.68 quarterly dividend, equivalent to an annualized 8.4% yield, though its payout ratio is elevated at 242.86%.

Walker & Dunlop, Inc. (NYSE:WD - Get Free Report)'s share price hit a new 52-week low during trading on Monday after Keefe, Bruyette & Woods lowered their price target on the stock from $57.00 to $45.00. Keefe, Bruyette & Woods currently has an outperform rating on the stock. Walker & Dunlop traded as low as $32.36 and last traded at $32.3650, with a volume of 25,121 shares trading hands. The stock had previously closed at $33.01.

A number of other research analysts also recently issued reports on the stock. Citigroup reiterated a "market outperform" rating on shares of Walker & Dunlop in a research note on Tuesday, August 18th. Citizens Jmp dropped their price objective on shares of Walker & Dunlop from $70.00 to $55.00 and set a "market outperform" rating on the stock in a research report on Tuesday, August 18th. Weiss Ratings cut shares of Walker & Dunlop from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, August 18th. Finally, Wall Street Zen upgraded shares of Walker & Dunlop from a "sell" rating to a "hold" rating in a research note on Saturday, August 29th. Five analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Walker & Dunlop presently has an average rating of "Moderate Buy" and an average price target of $61.00.

Hedge Funds Weigh In On Walker & Dunlop

Several institutional investors have recently bought and sold shares of the company. Tidal Investments LLC purchased a new position in Walker & Dunlop in the second quarter valued at about $405,000. Engineers Gate Manager LP bought a new stake in Walker & Dunlop during the second quarter worth approximately $673,000. Integrated Wealth Concepts LLC purchased a new stake in shares of Walker & Dunlop in the 2nd quarter valued at approximately $150,000. IFP Advisors Inc lifted its position in shares of Walker & Dunlop by 223.8% in the second quarter. IFP Advisors Inc now owns 489 shares of the financial services provider's stock worth $27,000 after purchasing an additional 338 shares in the last quarter. Finally, Baird Financial Group Inc. acquired a new stake in Walker & Dunlop during the second quarter valued at $207,000. 80.97% of the stock is owned by institutional investors and hedge funds.

Walker & Dunlop Price Performance

The business has a fifty day moving average of $40.16 and a 200 day moving average of $46.55. The stock has a market cap of $1.11 billion, a price-to-earnings ratio of 28.97 and a beta of 1.52.

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

Walker & Dunlop Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Thursday, August 20th were paid a $0.68 dividend. The ex-dividend date was Thursday, August 20th. This represents a $2.72 dividend on an annualized basis and a yield of 8.4%. Walker & Dunlop's dividend payout ratio (DPR) is presently 242.86%.

About Walker & Dunlop

Walker & Dunlop, Inc NYSE: WD is a commercial real estate finance and advisory company that provides capital and transaction services to property owners, investors, developers and other real estate participants. The company serves clients across major commercial property sectors, including multifamily, office, retail, industrial, hospitality and healthcare.

Its services include commercial real estate lending, debt and equity financing, investment sales, property sales, loan servicing, valuation and advisory services.

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