Analysts at Keefe, Bruyette & Woods have reduced their price target for Walker & Dunlop (NYSE: WD) from $82.00 to $80.00. This adjustment was communicated in a research report distributed to clients and investors on November 6, 2023. Despite the reduction, Keefe, Bruyette & Woods maintains an “outperform” rating for the financial services provider, suggesting confidence in the company’s future performance.
The new price target implies a potential upside of approximately 28.47% from Walker & Dunlop’s most recent closing price. This revision comes amid a series of assessments from other financial institutions. Weiss Ratings reiterated a “hold (c-)” rating on the stock, while Citigroup reaffirmed a “market outperform” rating in early December.
In contrast, Wall Street Zen downgraded Walker & Dunlop from “hold” to “sell” on November 8. On the positive side, JMP Securities has set a target price of $95.00 for the shares, also rating them as “market outperform.”
As of now, five investment analysts have assigned a “Buy” rating to Walker & Dunlop, while two have issued a “Hold” rating. According to MarketBeat, the average rating for the company stands at “Moderate Buy,” with a consensus price target of $87.00.
Recent Financial Performance
Walker & Dunlop released its quarterly earnings results on November 6, reporting an earnings per share (EPS) of $1.22. This figure exceeded the consensus estimate of $1.21 by a slight margin of $0.01. The firm achieved a net margin of 9.31% and a return on equity of 8.85%. Revenue for the quarter reached $337.68 million, surpassing analysts’ expectations of $325.10 million. This marks a year-over-year revenue increase of 15.5% compared to the same period last year, when the company reported an EPS of $1.19.
Looking ahead, sell-side analysts anticipate that Walker & Dunlop will post an EPS of 4.97 for the current fiscal year.
Institutional Investment Activity
Recent trading data reveals notable activity among institutional investors regarding Walker & Dunlop shares. Allworth Financial LP significantly increased its stake by 115.8% during the second quarter, acquiring an additional 257 shares and bringing its total to 479 shares valued at approximately $34,000.
Another firm, GAMMA Investing LLC, boosted its holdings by 65.7% during the third quarter, now owning 479 shares worth around $40,000. Additionally, Huntington National Bank raised its stake by 49.6%, while Strs Ohio acquired a new stake valued at approximately $51,000.
Overall, institutional investors and hedge funds hold about 80.97% of Walker & Dunlop’s stock, indicating strong confidence in the company’s future prospects.
Walker & Dunlop, headquartered in Bethesda, Maryland, is recognized as one of the largest providers of commercial real estate finance in the United States. The company specializes in various sectors, including multifamily housing and healthcare, and offers a comprehensive suite of debt and equity solutions.
The ongoing movements in the financial markets and the company’s recent performance will likely continue to attract attention from both investors and analysts in the upcoming quarters.
