Walker & Dunlop, Inc. (NYSE:WD) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Wall Street sentiment is cautiously positive: Walker & Dunlop has an average analyst rating of “Moderate Buy”, with five buy ratings and two holds among seven covering firms. The consensus 12-month price target is $79.20.
• Recent earnings were weak: The company reported $0.28 EPS for the quarter, well below the $1.46 consensus estimate, while revenue of $340.02 million also slightly missed expectations. Revenue was down 0.4% year over year.
• The stock offers a sizable dividend: Walker & Dunlop announced a quarterly dividend of $0.68 per share, equal to an annualized yield of 5.4%. However, the payout ratio is high at 134.65%, which may raise sustainability concerns.

Walker & Dunlop, Inc. (NYSE:WD - Get Free Report) has received an average rating of "Moderate Buy" from the seven ratings firms that are currently covering the stock, MarketBeat reports. Two analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. The average 12 month price objective among brokers that have covered the stock in the last year is $79.20.

Several research firms recently commented on WD. Keefe, Bruyette & Woods increased their price objective on Walker & Dunlop from $65.00 to $67.00 and gave the company an "outperform" rating in a research note on Friday, May 8th. Weiss Ratings raised Walker & Dunlop from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, May 11th. Stephens began coverage on Walker & Dunlop in a research note on Thursday, April 23rd. They issued an "overweight" rating and a $69.00 price objective for the company. Finally, Wall Street Zen raised Walker & Dunlop from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th.

Walker & Dunlop Stock Performance

NYSE WD opened at $50.43 on Friday. The business has a fifty day moving average price of $48.31 and a 200 day moving average price of $57.26. Walker & Dunlop has a one year low of $42.12 and a one year high of $90.00. The company has a market cap of $1.73 billion, a P/E ratio of 24.97 and a beta of 1.52.

Walker & Dunlop (NYSE:WD - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The financial services provider reported $0.28 EPS for the quarter, missing the consensus estimate of $1.46 by ($1.18). Walker & Dunlop had a net margin of 5.29% and a return on equity of 7.18%. The firm had revenue of $340.02 million during the quarter, compared to analyst estimates of $343.66 million. During the same period in the prior year, the company posted $1.32 earnings per share. The firm's revenue for the quarter was down .4% compared to the same quarter last year.

Walker & Dunlop Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Thursday, May 21st will be issued a $0.68 dividend. This represents a $2.72 annualized dividend and a yield of 5.4%. The ex-dividend date is Thursday, May 21st. Walker & Dunlop's dividend payout ratio is presently 134.65%.

Insider Buying and Selling at Walker & Dunlop

In related news, Director Ernest Michael Freedman bought 5,000 shares of the company's stock in a transaction on Thursday, March 5th. The stock was bought at an average cost of $49.21 per share, for a total transaction of $246,050.00. Following the acquisition, the director directly owned 6,097 shares in the company, valued at $300,033.37. This represents a 455.79% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Dana L. Schmaltz bought 1,000 shares of the company's stock in a transaction on Wednesday, March 18th. The stock was bought at an average price of $45.78 per share, with a total value of $45,780.00. Following the completion of the acquisition, the director owned 84,325 shares in the company, valued at $3,860,398.50. This represents a 1.20% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 4.02% of the stock is owned by corporate insiders.

Institutional Trading of Walker & Dunlop

Several large investors have recently added to or reduced their stakes in the stock. Arizona State Retirement System grew its holdings in Walker & Dunlop by 1.4% in the 3rd quarter. Arizona State Retirement System now owns 10,055 shares of the financial services provider's stock valued at $841,000 after buying an additional 142 shares in the last quarter. ProShare Advisors LLC grew its holdings in shares of Walker & Dunlop by 3.1% during the 4th quarter. ProShare Advisors LLC now owns 6,425 shares of the financial services provider's stock worth $386,000 after purchasing an additional 192 shares during the period. Huntington National Bank grew its holdings in shares of Walker & Dunlop by 49.6% during the 3rd quarter. Huntington National Bank now owns 585 shares of the financial services provider's stock worth $49,000 after purchasing an additional 194 shares during the period. State of Alaska Department of Revenue grew its holdings in shares of Walker & Dunlop by 1.1% during the 4th quarter. State of Alaska Department of Revenue now owns 18,787 shares of the financial services provider's stock worth $1,129,000 after purchasing an additional 202 shares during the period. Finally, HighTower Advisors LLC grew its holdings in shares of Walker & Dunlop by 1.0% during the 3rd quarter. HighTower Advisors LLC now owns 20,245 shares of the financial services provider's stock worth $1,693,000 after purchasing an additional 209 shares during the period. 80.97% of the stock is currently owned by hedge funds and other institutional investors.

About Walker & Dunlop

Walker & Dunlop is one of the largest providers of commercial real estate finance in the United States, specializing in the origination, servicing and sale of loans secured by multifamily, seniors housing, healthcare, student housing and manufactured housing properties. The firm offers a full suite of debt and equity solutions, including agency financing through Fannie Mae and Freddie Mac, HUD and FHA-insured loans, bridge and construction financing, mezzanine debt, preferred equity, and investment sales advisory.

With roots dating back to 1937 and its headquarters in Bethesda, Maryland, Walker & Dunlop has expanded its platform through both organic growth and strategic acquisitions.

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