Walker & Dunlop (NYSE:WD) Reaches New 12-Month Low - Time to Sell?

Key Points

• Walker & Dunlop shares hit a new 52-week low, falling to $41.09 and trading below both their 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a consensus “Moderate Buy” rating with an average price target of $74, well above the recent share price.
• The company beat quarterly EPS estimates but reported revenue below expectations and down 3.9% year over year; it also announced a $0.68 quarterly dividend, yielding approximately 6.6%.

Shares of Walker & Dunlop, Inc. (NYSE:WD - Get Free Report) reached a new 52-week low on Monday . The stock traded as low as $41.09 and last traded at $41.5690, with a volume of 83259 shares traded. The stock had previously closed at $42.56.

Analyst Ratings Changes

A number of equities analysts have commented on WD shares. Stephens started coverage on shares of Walker & Dunlop in a research note on Thursday, April 23rd. They issued an "overweight" rating and a $69.00 price target for the company. Keefe, Bruyette & Woods dropped their price objective on shares of Walker & Dunlop from $63.00 to $57.00 and set an "outperform" rating for the company in a report on Friday, August 7th. Weiss Ratings raised Walker & Dunlop from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, August 4th. Finally, Wall Street Zen cut Walker & Dunlop from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. Five investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $74.00.

Walker & Dunlop Stock Down 3.7%

The firm's 50-day simple moving average is $50.08 and its 200-day simple moving average is $51.30. The firm has a market capitalization of $1.41 billion, a PE ratio of 36.61 and a beta of 1.49.

Walker & Dunlop (NYSE:WD - Get Free Report) last released its earnings results on Thursday, August 6th. The financial services provider reported $1.19 earnings per share for the quarter, beating analysts' consensus estimates of $0.90 by $0.29. Walker & Dunlop had a return on equity of 7.25% and a net margin of 2.94%.The company had revenue of $306.69 million during the quarter, compared to analyst estimates of $337.37 million. During the same quarter in the previous year, the company posted $1.15 EPS. Walker & Dunlop's revenue for the quarter was down 3.9% on a year-over-year basis.

Walker & Dunlop Announces Dividend

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 paid a $0.68 dividend. This represents a $2.72 annualized dividend and a dividend yield of 6.6%. The ex-dividend date of this dividend is Thursday, August 20th. Walker & Dunlop's payout ratio is presently 242.86%.

Institutional Investors Weigh In On Walker & Dunlop

A number of large investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of Walker & Dunlop during the second quarter valued at approximately $289,614,000. Jupiter Topco LLC purchased a new position in Walker & Dunlop during the 2nd quarter valued at $63,434,000. Bank of America Corp DE bought a new position in Walker & Dunlop in the 2nd quarter worth $20,437,000. Balyasny Asset Management L.P. purchased a new stake in shares of Walker & Dunlop in the 2nd quarter worth about $15,147,000. Finally, Two Sigma Investments LP boosted its stake in shares of Walker & Dunlop by 238.2% during the 3rd quarter. Two Sigma Investments LP now owns 284,067 shares of the financial services provider's stock valued at $23,754,000 after purchasing an additional 200,074 shares in the last quarter. 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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