Walker & Dunlop (NYSE:WD) Sets New 12-Month Low - Should You Sell?

Key Points

• Walker & Dunlop shares hit a new 52-week low, trading as low as $37.00 versus a prior close of $38.32. The stock is below both its 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive despite the decline: five analysts rate the stock a Buy and one rates it Sell, producing a “Moderate Buy” consensus and a $64 average price target.
• The company beat quarterly earnings estimates with $1.19 in EPS versus $0.90 expected, but revenue fell 3.9% year over year and missed forecasts. Walker & Dunlop also offers a $0.68 quarterly dividend, equivalent to a 7.4% yield, though its payout ratio is elevated at 242.86%.

Walker & Dunlop, Inc. (NYSE:WD - Get Free Report) shares reached a new 52-week low during trading on Wednesday . The stock traded as low as $37.00 and last traded at $36.9990, with a volume of 13315 shares trading hands. The stock had previously closed at $38.32.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on WD shares. Weiss Ratings cut Walker & Dunlop from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, August 18th. Keefe, Bruyette & Woods reduced their price objective 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. Citizens Jmp decreased their price objective on Walker & Dunlop from $70.00 to $55.00 and set a "market outperform" rating for the company in a report on Tuesday, August 18th. Citigroup reissued a "market outperform" rating on shares of Walker & Dunlop in a research report on Tuesday, August 18th. Finally, Wall Street Zen upgraded Walker & Dunlop from a "sell" rating to a "hold" rating in a research note on Saturday, August 29th. Five equities research 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.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $64.00.

Walker & Dunlop Stock Performance

The stock's 50 day simple moving average is $43.75 and its 200 day simple moving average is $47.56. The firm has a market cap of $1.27 billion, a PE ratio of 33.03 and a beta of 1.45.

Walker & Dunlop (NYSE:WD - Get Free Report) last posted its 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 company had revenue of $306.69 million for 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%.Walker & Dunlop's revenue was down 3.9% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.15 earnings per share.

Walker & Dunlop Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Thursday, August 20th were issued a $0.68 dividend. This represents a $2.72 annualized dividend and a yield of 7.4%. The ex-dividend date was Thursday, August 20th. Walker & Dunlop's dividend payout ratio is presently 242.86%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. purchased a new stake in shares of Walker & Dunlop in the second quarter valued at $289,614,000. Jupiter Topco LLC acquired a new stake in shares of Walker & Dunlop during the second quarter worth approximately $63,434,000. Dimensional Fund Advisors LP raised its position in shares of Walker & Dunlop by 8.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,369,114 shares of the financial services provider's stock valued at $60,760,000 after acquiring an additional 104,008 shares in the last quarter. Royce & Associates LP grew its position in shares of Walker & Dunlop by 12.2% during the fourth quarter. Royce & Associates LP now owns 545,558 shares of the financial services provider's stock worth $32,815,000 after acquiring an additional 59,465 shares during the last quarter. Finally, Alyeska Investment Group L.P. increased its stake in Walker & Dunlop by 3.7% during the 2nd quarter. Alyeska Investment Group L.P. now owns 555,439 shares of the financial services provider's stock valued at $30,383,000 after buying an additional 19,988 shares during the period. 80.97% of the stock is owned by institutional investors and hedge funds.

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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