Walker & Dunlop (NYSE:WD) Sets New 1-Year Low - Should You Sell?

Key Points

• Walker & Dunlop shares fell 2.4% to an intraday 52-week low of $36.32, trading well below their 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 an average target of $64.
• The company exceeded quarterly EPS expectations but missed revenue estimates, while revenue declined 3.9% year over year. Its $0.68 quarterly dividend implies a 7.3% yield, though the payout ratio is high at 242.86%.

Walker & Dunlop, Inc. (NYSE:WD - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday. The company traded as low as $36.32 and last traded at $37.06, with a volume of 498574 shares changing hands. The stock had previously closed at $37.98.

Analyst Ratings Changes

WD has been the topic of several analyst reports. Citizens Jmp cut their target price on shares of Walker & Dunlop from $70.00 to $55.00 and set a "market outperform" rating on the stock in a report on Tuesday, August 18th. Keefe, Bruyette & Woods decreased their price target on shares of Walker & Dunlop from $63.00 to $57.00 and set an "outperform" rating for the company in a report on Friday, August 7th. 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. Citigroup reaffirmed a "market outperform" rating on shares of Walker & Dunlop in a research note on Tuesday, August 18th. Finally, Wall Street Zen upgraded Walker & Dunlop from a "sell" rating to a "hold" rating in a report on Saturday, August 29th. Five equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $64.00.

Walker & Dunlop Trading Down 2.4%

The firm has a market capitalization of $1.27 billion, a P/E ratio of 33.09 and a beta of 1.45. The business has a 50 day moving average of $42.76 and a 200-day moving average of $47.23.

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

Walker & Dunlop Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Thursday, August 20th were issued a dividend of $0.68 per share. This represents a $2.72 dividend on an annualized basis and a dividend yield of 7.3%. The ex-dividend date was Thursday, August 20th. Walker & Dunlop's dividend payout ratio (DPR) is presently 242.86%.

Hedge Funds Weigh In On Walker & Dunlop

A number of institutional investors and hedge funds have recently added to or reduced their stakes in WD. Huntington National Bank raised its stake in Walker & Dunlop by 47.9% during the 4th quarter. Huntington National Bank now owns 865 shares of the financial services provider's stock worth $52,000 after acquiring an additional 280 shares during the period. EverSource Wealth Advisors LLC boosted its position in shares of Walker & Dunlop by 107.9% in the first quarter. EverSource Wealth Advisors LLC now owns 580 shares of the financial services provider's stock worth $26,000 after purchasing an additional 301 shares during the period. IFP Advisors Inc boosted 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 during the period. Thornburg Investment Management Inc. increased its stake in shares of Walker & Dunlop by 0.3% in the fourth 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 in the last quarter. Finally, Essential Partners LLC increased its stake in shares of Walker & Dunlop by 709.1% in the first quarter. Essential Partners LLC now owns 623 shares of the financial services provider's stock worth $28,000 after purchasing an additional 546 shares in the last quarter. 80.97% of the stock is owned by institutional investors and hedge funds.

About Walker & Dunlop

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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