On August 20, 2023, it was reported that Y Intercept Hong Kong Ltd had reduced its holdings in shares of Walker & Dunlop, Inc. (NYSE:WD) by 58.7% during the first quarter of the year. According to the company’s most recent filing with the Securities and Exchange Commission (SEC), the institutional investor now owns 3,211 shares of the financial services provider’s stock, having sold 4,567 shares during the quarter. The value of Y Intercept Hong Kong Ltd’s holdings in Walker & Dunlop was estimated at $245,000 at the end of the most recent quarter.
This announcement comes amidst a series of analyst reports that have been published on Walker & Dunlop recently. In one such report, JMP Securities downgraded the company’s shares from an “outperform” rating to a “market perform” rating. Another report from TheStreet downgraded their rating from a “b-” to a “c”. Additionally, StockNews.com initiated coverage on Walker & Dunlop and issued a “sell” rating for the company. On a more positive note, Wedbush raised their price target for Walker & Dunlop from $90.00 to $105.00 in another report.
As of Friday, NYSE:WD opened at $85.20 per share. Over the past year, Walker & Dunlop has seen its stock price fluctuate between a low of $61.06 and a high of $110.87. The company currently has a market capitalization of $2.84 billion and a price-to-earnings ratio of 20.05. It also has a beta value of 1.40.
The company’s average stock price over a span of 50 days is recorded at $84.70 while its two-hundred day moving average price stands at $80.07.
Please note that this article is based on information available as of August 20, 2023, and the stock prices mentioned are subject to change.
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Significant Changes in Investor Holdings and Insider Sales Impact Walker & Dunlop’s Financial Standing
Walker & Dunlop, a financial services provider, has seen some significant changes in the positions held by large investors. Covestor Ltd increased its holdings in the company by an astonishing 5,066.7% during the first quarter. This surge in holdings resulted in Covestor now owning 310 shares of Walker & Dunlop’s stock worth $40,000, after acquiring an additional 304 shares last quarter. Another investor, First Manhattan Co., recently bought a new stake in Walker & Dunlop valued at $65,000 during the same period.
Furthermore, Quadrant Capital Group LLC experienced significant growth in its holdings of Walker & Dunlop shares. Their holdings grew by 181.9% during the fourth quarter, with Quadrant now owning 1,012 shares of the financial services provider’s stock worth $79,000 after purchasing an additional 653 shares last quarter. Captrust Financial Advisors also lifted their holdings by 160.2% during the first quarter and now own 1,478 shares worth $191,000 after acquiring an additional 910 shares.
These major changes to investor portfolios are part of a larger trend among institutional investors and hedge funds who currently own approximately 75.79% of Walker & Dunlop’s stock.
On another note related to the company’s activities, President Howard W. Smith III recently sold 20,000 shares of Walker & Dunlop stock on Wednesday, August 9th for a total transaction value of $1,671,400 or an average price of $83.57 per share. Following this transaction, President Smith now directly holds around 197,000 shares valued at approximately $16,463,290.
Alongside President Smith’s sale is another recent transaction involving EVP Paula A. Pryor who sold off 1,135 shares on Friday August 11th at an average price of $88 per share for a total transaction value of $99,880. After this sale, Pryor now holds 7,426 shares valued at around $653,488.
In light of these sales by company insiders, it is worth noting that a total of 38,084 shares were sold in the last quarter by insiders. These shares had a combined value of $3,223,809 and insiders within the company now own 5.47% of Walker & Dunlop’s stock.
Analysts have been closely monitoring the developments surrounding Walker & Dunlop and have released various reports on the company. JMP Securities downgraded their rating for the stock from “outperform” to “market perform” on May 2nd, while TheStreet lowered their rating from “b-” to “c” on May 5th. StockNews.com recently initiated coverage on Walker & Dunlop with a “sell” rating. On a more positive note, Wedbush raised their price target for Walker & Dunlop from $90.00 to $105.00 on August 4th.
Walker & Dunlop reported its quarterly earnings results on Thursday, August 3rd. The financial services provider fell short of analysts’ consensus estimates with reported earnings per share of $0.98 for the quarter compared to an estimate of $1.06 per share – a difference of ($0.08). Despite missing estimates, Walker & Dunlop achieved a return on equity of 9.73% and a net margin of 12.85%. The company also generated revenue amounting to $272.62 million during the quarter – higher than the consensus estimate of $257.99 million.
Additionally noteworthy is that Walker & Dunlop recently disclosed a quarterly dividend scheduled to be paid out on Friday September 1st to investors recorded as such on Thursday August 17th with dividend payouts amounting to $0.63 per share held by investors representing an annualized basis dividend payout ratio of 59.29% and a yield of 2.96%. The ex-dividend date for this dividend is Wednesday, August 16th.
Overall, the developments within Walker & Dunlop’s financial standings and investor positions have generated interest among investors and analysts alike. As the company moves forward, its performance in the coming fiscal year is anticipated to be closely monitored and analyzed by stakeholders in the industry.
