Walker & Dunlop (NYSE:WD) Shares Gap Up – Should You Buy?

Walker & Dunlop, Inc. (NYSE:WD)’s stock price gapped up before the market opened on Wednesday. The stock had previously closed at $31.67, but opened at $33.64. Walker & Dunlop shares last traded at $33.0950, with a volume of 6,130 shares changing hands.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Citigroup reissued a “market outperform” rating on shares of Walker & Dunlop in a research report on Friday, October 16th. Wall Street Zen upgraded Walker & Dunlop from a “sell” rating to a “hold” rating in a research report on Saturday, August 29th. Citizens Jmp cut their target price on Walker & Dunlop from $55.00 to $50.00 and set a “market outperform” rating on the stock in a research note on Friday, October 16th. Keefe, Bruyette & Woods decreased their price target on Walker & Dunlop from $57.00 to $45.00 and set an “outperform” rating for the company in a research note on Friday, October 9th. Finally, Weiss Ratings lowered Walker & Dunlop from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Tuesday, August 18th. Five research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $59.75.

Walker & Dunlop Price Performance

The company has a market capitalization of $1.19 billion, a PE ratio of 8.87 and a beta of 1.52. The company’s fifty day moving average is $37.74 and its 200-day moving average is $45.82.

Walker & Dunlop (NYSE:WD) last issued its quarterly earnings data on Thursday, August 6th. The financial services provider reported $1.19 EPS for the quarter, topping analysts’ consensus estimates 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 the consensus estimate of $337.37 million. During the same quarter in the previous year, the firm posted $1.15 earnings per share. Walker & Dunlop’s revenue for the quarter was down 3.9% compared to the same quarter last year.

Walker & Dunlop Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Thursday, August 20th were paid a dividend of $0.68 per share. This represents a $2.72 dividend on an annualized basis and a dividend yield of 7.8%. The ex-dividend date was Thursday, August 20th. Walker & Dunlop’s dividend payout ratio is 242.86%.

Institutional Investors Weigh In On Walker & Dunlop

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in Walker & Dunlop in the second quarter valued at about $289,614,000. Jupiter Topco LLC purchased a new stake in shares of Walker & Dunlop during the second quarter valued at about $63,434,000. Dimensional Fund Advisors LP boosted its holdings in shares of Walker & Dunlop by 8.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,369,114 shares of the financial services provider’s stock valued at $60,760,000 after buying an additional 104,008 shares in the last quarter. Alyeska Investment Group L.P. boosted its holdings in shares of Walker & Dunlop by 3.7% in the 2nd quarter. Alyeska Investment Group L.P. now owns 555,439 shares of the financial services provider’s stock valued at $30,383,000 after buying an additional 19,988 shares in the last quarter. Finally, Conversant Capital LLC boosted its holdings in shares of Walker & Dunlop by 33.0% in the 1st quarter. Conversant Capital LLC now owns 560,316 shares of the financial services provider’s stock valued at $24,867,000 after buying an additional 138,936 shares in the last quarter. Institutional investors own 80.97% of the company’s stock.

About Walker & Dunlop

Walker & Dunlop, Inc is a commercial real estate finance and advisory firm serving property owners, investors and developers across the United States. The company provides financing, investment sales, valuation, research and advisory services for a broad range of commercial real estate assets, including multifamily, office, industrial, retail, hospitality and senior housing properties.

Its financing business arranges debt and equity solutions through relationships with banks, life insurance companies, government-sponsored enterprises and other capital providers.