Walker & Dunlop (NYSE:WD) Hits New 52-Week Low - Here's What Happened

Key Points

• Walker & Dunlop shares fell to a new 52-week low, trading as low as $39.43 and closing near $39.58, well below its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed: several firms cut their price targets, while the stock retains a “Moderate Buy” consensus rating and an average target of $64.
• The company beat quarterly earnings expectations with EPS of $1.19 versus $0.90 forecast, but revenue declined 3.9% year over year. It also announced a quarterly dividend of $0.68, implying a 6.9% annualized yield, though its payout ratio is high at 242.86%.

Walker & Dunlop, Inc. (NYSE:WD - Get Free Report)'s stock price hit a new 52-week low on Monday . The stock traded as low as $39.43 and last traded at $39.58, with a volume of 55400 shares changing hands. The stock had previously closed at $40.22.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on WD shares. Keefe, Bruyette & Woods reduced their price objective on shares of Walker & Dunlop from $63.00 to $57.00 and set an "outperform" rating for the company in a research note on Friday, August 7th. Citigroup reaffirmed a "market outperform" rating on shares of Walker & Dunlop in a report on Tuesday, August 18th. Citizens Jmp cut their price target on Walker & Dunlop from $70.00 to $55.00 and set a "market outperform" rating for the company in a research note on Tuesday, August 18th. Wall Street Zen cut Walker & Dunlop from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. Finally, Weiss Ratings downgraded Walker & Dunlop from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, August 18th. Five equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $64.00.

Walker & Dunlop Stock Down 1.9%

The firm's fifty day moving average price is $48.90 and its 200 day moving average price is $50.49. The stock has a market cap of $1.36 billion, a PE ratio of 35.19 and a beta of 1.49.

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 the consensus estimate of $0.90 by $0.29. Walker & Dunlop had a net margin of 2.94% and a return on equity of 7.25%. The company had revenue of $306.69 million during the quarter, compared to analysts' expectations of $337.37 million. During the same period last year, the company posted $1.15 earnings per share. Walker & Dunlop's quarterly revenue was down 3.9% on a year-over-year basis.

Walker & Dunlop Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Thursday, August 20th will be given a $0.68 dividend. This represents a $2.72 dividend on an annualized basis and a dividend yield of 6.9%. The ex-dividend date is Thursday, August 20th. Walker & Dunlop's payout ratio is currently 242.86%.

Institutional Trading of Walker & Dunlop

A number of large investors have recently added to or reduced their stakes in WD. California State Teachers Retirement System grew its holdings in shares of Walker & Dunlop by 7,135.4% in the second quarter. California State Teachers Retirement System now owns 2,099,988 shares of the financial services provider's stock valued at $114,869,000 after purchasing an additional 2,070,964 shares in the last quarter. Nykredit A S purchased a new stake in Walker & Dunlop during the second quarter valued at $52,000. RPg Family Wealth Advisory LLC lifted its position in Walker & Dunlop by 16.3% during the second quarter. RPg Family Wealth Advisory LLC now owns 148,814 shares of the financial services provider's stock valued at $8,140,000 after purchasing an additional 20,822 shares during the last quarter. Alyeska Investment Group L.P. lifted its position in 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 purchasing an additional 19,988 shares during the last quarter. Finally, Public Employees Retirement System of Ohio purchased a new position in shares of Walker & Dunlop in the 2nd quarter worth $58,000. Institutional investors own 80.97% of the company's stock.

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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