Walker & Dunlop (NYSE:WD) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Walker & Dunlop from a “sell” to a “hold” rating, adding to a mixed but generally constructive analyst backdrop for the stock.
• Other analysts remain bullish overall: Stephens started coverage with an “overweight” rating and a $69 target, while Keefe, Bruyette & Woods raised its target to $67 and kept an “outperform” rating. The consensus view on MarketBeat is a Moderate Buy with a $79.20 price target.
• The company recently posted weak prior-quarter results, missing EPS expectations by a wide margin, but its latest reported Q1 update showed EPS of $1.02 and revenue of $301.33 million, both beating estimates and rising sharply year over year.

Walker & Dunlop (NYSE:WD - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued on Saturday.

Other equities research analysts have also issued reports about the company. Stephens initiated 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. Weiss Ratings lowered Walker & Dunlop from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, April 6th. Finally, Keefe, Bruyette & Woods upped their price objective on Walker & Dunlop from $65.00 to $67.00 and gave the stock an "outperform" rating in a research note on Friday. Five investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Walker & Dunlop has a consensus rating of "Moderate Buy" and a consensus price target of $79.20.

Walker & Dunlop Price Performance

NYSE:WD opened at $54.57 on Friday. The firm has a market capitalization of $1.87 billion, a price-to-earnings ratio of 27.01 and a beta of 1.52. Walker & Dunlop has a one year low of $42.12 and a one year high of $90.00. The business has a fifty day moving average price of $47.73 and a 200-day moving average price of $59.48.

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). The company had revenue of $340.02 million during the quarter, compared to analysts' expectations of $343.66 million. Walker & Dunlop had a return on equity of 7.18% and a net margin of 5.29%.The company's revenue for the quarter was down .4% on a year-over-year basis. During the same quarter last year, the company earned $1.32 earnings per share.

Insiders Place Their Bets

In other Walker & Dunlop news, Director Dana L. Schmaltz purchased 1,000 shares of the business's stock in a transaction on Wednesday, March 18th. The stock was acquired at an average price of $45.78 per share, for a total transaction of $45,780.00. Following the purchase, the director 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Ernest Michael Freedman purchased 5,000 shares of the business's stock in a transaction on 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 purchase, the director directly owned 6,097 shares in the company, valued at $300,033.37. This represents a 455.79% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 4.02% of the company's stock.

Institutional Investors Weigh In On Walker & Dunlop

A number of institutional investors have recently bought and sold shares of WD. Deprince Race & Zollo Inc. increased its stake in 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 worth $51,673,000 after buying an additional 321,734 shares in the last quarter. Balyasny Asset Management L.P. purchased a new stake in Walker & Dunlop in the 2nd quarter worth $15,147,000. Two Sigma Investments LP increased its stake in Walker & Dunlop by 238.2% in the 3rd quarter. Two Sigma Investments LP now owns 284,067 shares of the financial services provider's stock worth $23,754,000 after buying an additional 200,074 shares in the last quarter. Jane Street Group LLC increased its stake in Walker & Dunlop by 568.4% in the 4th quarter. Jane Street Group LLC now owns 181,627 shares of the financial services provider's stock worth $10,925,000 after buying an additional 154,455 shares in the last quarter. Finally, Squarepoint Ops LLC purchased a new stake in Walker & Dunlop in the 4th quarter worth $8,526,000. Hedge funds and other institutional investors own 80.97% of the company's stock.

Key Stories Impacting Walker & Dunlop

Here are the key news stories impacting Walker & Dunlop this week:

• Positive Sentiment: Walker & Dunlop reported Q1 earnings of $1.02 per share, far above estimates, with revenue of $301.33 million also topping expectations and rising 26.9% year over year. MarketBeat earnings report
• Positive Sentiment: Keefe, Bruyette & Woods raised its price target on Walker & Dunlop to $67 from $65 and reiterated an outperform rating, signaling continued analyst confidence. Benzinga article
• Positive Sentiment: The company announced a quarterly dividend of $0.68 per share, which supports the stock’s appeal for income-focused investors.
• Neutral Sentiment: Management struck an optimistic tone on the earnings call, and a reported surge in call volume suggests investors are actively re-evaluating the name after the results. TipRanks earnings call article
• Neutral Sentiment: Additional coverage of the quarter and transcript publication may keep attention on the stock, but these items are largely follow-up items to the earnings release. Seeking Alpha transcript

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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