Walker & Dunlop (NYSE:WD) Shares Gap Up - Time to Buy?

Key Points

• Walker & Dunlop shares opened sharply higher, rising from a prior close of $31.67 to $33.64 before trading near $33.10.
• Analyst sentiment remains broadly positive, with five Buy ratings and one Sell rating producing a consensus “Moderate Buy” rating and an average price target of $59.75, despite several recent target cuts.
• The company beat quarterly EPS expectations ($1.19 versus $0.90) but missed revenue estimates, while its $0.68 quarterly dividend implies an unusually high 8.2% yield and a 242.86% payout ratio.

Shares of Walker & Dunlop, Inc. (NYSE:WD - Get Free Report) gapped up prior to trading on Wednesday. The stock had previously closed at $31.67, but opened at $33.64. Walker & Dunlop shares last traded at $33.0950, with a volume of 6,130 shares.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on WD shares. Citizens Jmp cut their price target on Walker & Dunlop from $55.00 to $50.00 and set a "market outperform" rating for the company in a research note on Friday, October 16th. Keefe, Bruyette & Woods reduced their price target on Walker & Dunlop from $57.00 to $45.00 and set an "outperform" rating for the company in a report on Friday, October 9th. Citigroup reissued a "market outperform" rating on shares of Walker & Dunlop in a research note on Friday, October 16th. Wall Street Zen upgraded Walker & Dunlop from a "sell" rating to a "hold" rating in a report on Saturday, August 29th. Finally, Weiss Ratings downgraded Walker & Dunlop from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, August 18th. Five equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $59.75.

Walker & Dunlop Price Performance

The stock's 50 day moving average price is $38.09 and its two-hundred day moving average price is $45.97. The firm has a market capitalization of $1.13 billion, a price-to-earnings ratio of 29.67 and a beta of 1.52.

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

Walker & Dunlop Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders 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 yield of 8.2%. The ex-dividend date was Thursday, August 20th. Walker & Dunlop's dividend payout ratio is 242.86%.

Institutional Investors Weigh In On Walker & Dunlop

Hedge funds and other institutional investors have recently made changes to their positions in the business. BlackRock Inc. bought a new stake in Walker & Dunlop in the 2nd quarter valued at $289,614,000. Jupiter Topco LLC bought a new position in shares of Walker & Dunlop during the 2nd quarter worth about $63,434,000. Dimensional Fund Advisors LP raised its position in shares of Walker & Dunlop by 8.2% during the first quarter. Dimensional Fund Advisors LP now owns 1,369,114 shares of the financial services provider's stock valued at $60,760,000 after buying an additional 104,008 shares during the last quarter. Alyeska Investment Group L.P. raised its position in shares of Walker & Dunlop by 3.7% during the second 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 last quarter. Finally, Conversant Capital LLC raised its position in shares of Walker & Dunlop by 33.0% during the first quarter. Conversant Capital LLC now owns 560,316 shares of the financial services provider's stock valued at $24,867,000 after buying an additional 138,936 shares during the last quarter. 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 serving property owners, investors and developers across the United States. The company provides financing, investment sales, valuation, research and advisory services for a broad range of commercial real estate assets, including multifamily, office, industrial, retail, hospitality and senior housing properties.

Its financing business arranges debt and equity solutions through relationships with banks, life insurance companies, government-sponsored enterprises and other capital providers.

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