Walker & Dunlop (NYSE:WD) Trading Down 16.7% - Should You Sell?

Key Points

• Walker & Dunlop shares fell 16.7% to approximately $42.81, with trading volume down 94% from the average session. The stock is below its 50-day and 200-day moving averages.
• Analyst sentiment remains generally positive despite the sell-off: five analysts rate the stock a Buy and two rate it a Hold, producing a consensus “Moderate Buy” rating and a $79.20 price target.
• The company exceeded quarterly EPS expectations, reporting $1.19 versus the $0.90 consensus estimate, but revenue of $306.69 million missed expectations and declined 3.9% year over year.

Walker & Dunlop, Inc. (NYSE:WD - Get Free Report) fell 16.7% on Thursday . The stock traded as low as $44.90 and last traded at $42.8090. 19,820 shares changed hands during trading, a decline of 94% from the average session volume of 320,429 shares. The stock had previously closed at $51.39.

Analyst Ratings Changes

Several equities analysts have commented on WD shares. Wall Street Zen raised Walker & Dunlop from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Keefe, Bruyette & Woods lifted their price target on shares of Walker & Dunlop from $65.00 to $67.00 and gave the company an "outperform" rating in a research report on Friday, May 8th. Weiss Ratings upgraded shares of Walker & Dunlop from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday. Finally, Stephens assumed coverage on shares of Walker & Dunlop in a report on Thursday, April 23rd. They set an "overweight" rating and a $69.00 target price for the company. Five analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $79.20.

Walker & Dunlop Stock Performance

The company has a market capitalization of $1.45 billion, a PE ratio of 21.21 and a beta of 1.49. The company's 50-day moving average is $51.02 and its 200 day moving average is $52.34.

Walker & Dunlop (NYSE:WD - Get Free Report) last issued its earnings results on Thursday, August 6th. The financial services provider reported $1.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.90 by $0.29. The business had revenue of $306.69 million during the quarter, compared to analysts' expectations of $337.37 million. Walker & Dunlop had a net margin of 5.29% and a return on equity of 7.18%. The business's revenue for the quarter was down 3.9% compared to the same quarter last year. During the same period in the previous year, the company earned $1.15 earnings per share.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of WD. Flagship Harbor Advisors LLC purchased a new stake in shares of Walker & Dunlop during the fourth quarter valued at $25,000. EverSource Wealth Advisors LLC boosted its holdings in shares of Walker & Dunlop by 107.9% during the 1st quarter. EverSource Wealth Advisors LLC now owns 580 shares of the financial services provider's stock valued at $26,000 after acquiring an additional 301 shares during the last quarter. Essential Partners LLC grew its stake in shares of Walker & Dunlop by 709.1% in the first quarter. Essential Partners LLC now owns 623 shares of the financial services provider's stock worth $28,000 after acquiring an additional 546 shares during the period. Caitong International Asset Management Co. Ltd raised its holdings in shares of Walker & Dunlop by 1,398.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 734 shares of the financial services provider's stock valued at $44,000 after purchasing an additional 685 shares during the last quarter. Finally, Strs Ohio purchased a new stake in Walker & Dunlop in the first quarter worth approximately $51,000. Hedge funds and other 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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