Walker & Dunlop, Inc. (NYSE:WD) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Moderate Buy consensus from seven brokerages (five buys, one hold, one sell) with an average 12‑month price target of $78.80; recent analyst moves include Weiss cutting to sell, Keefe Bruyette & Woods trimming its target to $65, and Stephens initiating at $69 (overweight).
• The company posted a sizable quarterly EPS miss — $0.28 versus $1.46 expected — and slightly missed revenue, leaving modest margins and a current share price (~$50.91) well below the 200‑day moving average (~$60.75).
• Walker & Dunlop raised its quarterly dividend to $0.68 (annualized $2.72) for a 5.3% yield

Walker & Dunlop, Inc. (NYSE:WD - Get Free Report) has received a consensus rating of "Moderate Buy" from the seven brokerages that are currently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation and five have given a buy recommendation to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $78.80.

A number of equities research analysts recently issued reports on WD shares. Weiss Ratings lowered Walker & Dunlop from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, April 6th. Keefe, Bruyette & Woods cut their price target on shares of Walker & Dunlop from $80.00 to $65.00 and set an "outperform" rating on the stock in a report on Friday, February 27th. Finally, Stephens began coverage on shares of Walker & Dunlop in a report on Thursday. They issued an "overweight" rating and a $69.00 price target on the stock.

Insider Buying and Selling at Walker & Dunlop

In related news, Director Dana L. Schmaltz purchased 1,000 shares of the business's stock in a transaction dated Wednesday, March 18th. The shares were acquired at an average cost of $45.78 per share, for a total transaction of $45,780.00. Following the acquisition, the director owned 84,325 shares of the company's stock, valued at $3,860,398.50. The trade was a 1.20% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Ernest Michael Freedman acquired 5,000 shares of the firm's stock in a transaction dated Thursday, March 5th. The shares were acquired at an average price of $49.21 per share, with a total value of $246,050.00. Following the acquisition, the director owned 6,097 shares in the company, valued at approximately $300,033.37. The trade was a 455.79% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 4.02% of the company's stock.

Hedge Funds Weigh In On Walker & Dunlop

Several institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. lifted its stake in shares of Walker & Dunlop by 0.4% in the 3rd quarter. Vanguard Group Inc. now owns 3,743,034 shares of the financial services provider's stock valued at $312,993,000 after purchasing an additional 16,392 shares during the period. State Street Corp lifted its stake in shares of Walker & Dunlop by 2.6% in the 4th quarter. State Street Corp now owns 1,496,711 shares of the financial services provider's stock valued at $90,027,000 after purchasing an additional 37,828 shares during the period. Dimensional Fund Advisors LP lifted its stake in shares of Walker & Dunlop by 1.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,265,106 shares of the financial services provider's stock valued at $76,097,000 after purchasing an additional 17,846 shares during the period. Alliancebernstein L.P. lifted its stake in shares of Walker & Dunlop by 10.4% in the 3rd quarter. Alliancebernstein L.P. now owns 1,198,071 shares of the financial services provider's stock valued at $100,183,000 after purchasing an additional 113,282 shares during the period. Finally, Deprince Race & Zollo Inc. lifted its stake in shares of Walker & Dunlop by 59.9% in the 4th quarter. Deprince Race & Zollo Inc. now owns 859,072 shares of the financial services provider's stock valued at $51,673,000 after purchasing an additional 321,734 shares during the period. Institutional investors and hedge funds own 80.97% of the company's stock.

Walker & Dunlop Price Performance

NYSE WD opened at $50.91 on Tuesday. The stock has a market capitalization of $1.75 billion, a PE ratio of 31.04 and a beta of 1.53. The business has a 50 day simple moving average of $49.07 and a two-hundred day simple moving average of $60.75. Walker & Dunlop has a 1-year low of $42.12 and a 1-year high of $90.00.

Walker & Dunlop (NYSE:WD - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The financial services provider reported $0.28 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.46 by ($1.18). The business had revenue of $340.02 million for the quarter, compared to analysts' expectations of $343.66 million. Walker & Dunlop had a net margin of 4.56% and a return on equity of 6.81%. Walker & Dunlop's revenue for the quarter was down .4% compared to the same quarter last year. During the same period in the previous year, the company earned $1.32 EPS.

Walker & Dunlop Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, March 27th. Stockholders of record on Friday, March 13th were paid a dividend of $0.68 per share. This is an increase from Walker & Dunlop's previous quarterly dividend of $0.67. This represents a $2.72 annualized dividend and a dividend yield of 5.3%. The ex-dividend date was Friday, March 13th. Walker & Dunlop's payout ratio is 165.85%.

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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