Walker & Dunlop (NYSE:WD) Raised to "Strong-Buy" at Stephens

Key Points

• Stephens upgraded Walker & Dunlop to a "Strong-Buy"; the analyst mix is 1 Strong Buy, 4 Buy, 1 Hold and 1 Sell, with a MarketBeat consensus of "Moderate Buy" and an average target price of $78.80.
• Quarterly earnings missed: the firm reported EPS of $0.28 versus $1.46 expected and revenue of $340.02M (slightly below estimates), with a net margin of 4.56% and ROE of 6.81%.
• Insider and institutional activity: two directors bought shares recently (5,000 and 1,000 shares), insiders own 4.02% and institutions about 80.97%; the stock traded near $51.44 with a 52‑week range of $42.12–$90.00 and a market cap of ~$1.76B.

Walker & Dunlop (NYSE:WD - Get Free Report) was upgraded by equities research analysts at Stephens to a "strong-buy" rating in a report released on Thursday,Zacks.com reports.

Several other analysts also recently issued reports on WD. Keefe, Bruyette & Woods lowered their price objective on shares of Walker & Dunlop from $80.00 to $65.00 and set an "outperform" rating for the company in a research report on Friday, February 27th. Weiss Ratings downgraded shares of Walker & Dunlop from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, April 6th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $78.80.

Walker & Dunlop Stock Up 3.6%

Shares of NYSE:WD opened at $51.44 on Thursday. Walker & Dunlop has a 52-week low of $42.12 and a 52-week high of $90.00. The company has a 50 day moving average of $49.29 and a two-hundred day moving average of $61.23. The company has a market capitalization of $1.76 billion, a price-to-earnings ratio of 31.36 and a beta of 1.53.

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

Insider Buying and Selling

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

Institutional Trading of Walker & Dunlop

A number of hedge funds have recently made changes to their positions in the stock. Pictet Asset Management Holding SA grew its position in shares of Walker & Dunlop by 17.3% during the first quarter. Pictet Asset Management Holding SA now owns 5,783 shares of the financial services provider's stock worth $257,000 after buying an additional 852 shares in the last quarter. Louisiana State Employees Retirement System acquired a new position in Walker & Dunlop in the first quarter worth $670,000. SG Americas Securities LLC boosted its holdings in Walker & Dunlop by 45.5% in the first quarter. SG Americas Securities LLC now owns 72,175 shares of the financial services provider's stock worth $3,203,000 after purchasing an additional 22,571 shares during the period. Caitong International Asset Management Co. Ltd boosted its holdings in Walker & Dunlop by 1,398.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 734 shares of the financial services provider's stock worth $44,000 after purchasing an additional 685 shares during the period. Finally, Virtu Financial LLC acquired a new position in Walker & Dunlop in the fourth quarter worth $263,000. Institutional investors and hedge funds 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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