Walker & Dunlop (NYSE:WD) Shares Gap Down Following Weak Earnings

Shares of Walker & Dunlop, Inc. (NYSE:WD) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $58.91, but opened at $55.02. Walker & Dunlop shares last traded at $52.67, with a volume of 125,389 shares.

The financial services provider reported $0.28 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.46 by ($1.18). Walker & Dunlop had a return on equity of 6.80% and a net margin of 4.56%.The company had revenue of $340.02 million for the quarter, compared to the consensus estimate of $343.66 million. During the same quarter last year, the company posted $1.32 EPS. The company’s quarterly revenue was down .4% compared to the same quarter last year.

Walker & Dunlop Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 27th. Stockholders of record on Friday, March 13th will be issued a $0.68 dividend. This is an increase from Walker & Dunlop’s previous quarterly dividend of $0.67. This represents a $2.72 annualized dividend and a dividend yield of 5.9%. The ex-dividend date is Friday, March 13th. Walker & Dunlop’s dividend payout ratio is currently 79.53%.

Walker & Dunlop News Roundup

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

• Positive Sentiment: Board raised the quarterly dividend to $0.68 (1.5% increase), implying a ~5.7% yield — supports income investors and can underpin the share base.
• Positive Sentiment: Management provided 2026 EPS guidance of $3.50–$4.00 and said it will accelerate asset sales to shore up earnings and pursue market‑share growth; this signals a path to restore profitability (may be seen as constructive if execution follows). Walker & Dunlop outlines $3.50–$4.00 EPS guidance
• Neutral Sentiment: Keefe, Bruyette & Woods cut its price target from $80 to $65 but kept an “outperform” rating — still signals upside vs. current levels, though the lower target reduces near‑term analyst support. Benzinga
• Neutral Sentiment: Conference call and transcript / slide deck are available for investors to assess management’s explanation of the quarter and details on asset sales and capital allocation. Earnings Call Transcript
• Negative Sentiment: Q4 EPS missed heavily: reported $0.28 vs. consensus ~$1.46 (a ~$1.18 shortfall); revenue of $340.0M slightly missed estimates — the large EPS miss is the primary catalyst for the decline and raises near‑term execution concerns. MarketBeat earnings summary
• Negative Sentiment: Market commentary notes shares are falling on the results; the stock is trading well below its 50‑day and 200‑day moving averages and nearer its one‑year low, which can amplify downside while investors reassess valuation and the timing of asset sales. Why Walker & Dunlop Shares Are Falling Today

Analysts Set New Price Targets

WD has been the subject of several analyst reports. Keefe, Bruyette & Woods decreased their price objective on shares of Walker & Dunlop from $80.00 to $65.00 and set an “outperform” rating for the company in a research note on Friday. Wall Street Zen lowered Walker & Dunlop from a “hold” rating to a “sell” rating in a report on Saturday, November 8th. Citigroup reaffirmed a “market outperform” rating on shares of Walker & Dunlop in a research report on Friday, December 5th. Jefferies Financial Group initiated coverage on Walker & Dunlop in a report on Friday, December 19th. They set a “buy” rating and a $75.00 price target on the stock. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Walker & Dunlop in a research note on Monday, December 29th. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $81.25.

Hedge Funds Weigh In On Walker & Dunlop

Institutional investors have recently bought and sold shares of the company. Arizona State Retirement System grew its position in shares of Walker & Dunlop by 1.4% in the 3rd quarter. Arizona State Retirement System now owns 10,055 shares of the financial services provider’s stock worth $841,000 after buying an additional 142 shares during the period. Profund Advisors LLC boosted its stake in Walker & Dunlop by 6.5% during the second quarter. Profund Advisors LLC now owns 2,982 shares of the financial services provider’s stock worth $210,000 after acquiring an additional 183 shares in the last quarter. GAMMA Investing LLC lifted its holdings in shares of Walker & Dunlop by 65.7% during the third quarter. GAMMA Investing LLC now owns 479 shares of the financial services provider’s stock valued at $40,000 after purchasing an additional 190 shares during the last quarter. ProShare Advisors LLC boosted its position in shares of Walker & Dunlop by 3.1% in the 4th quarter. ProShare Advisors LLC now owns 6,425 shares of the financial services provider’s stock worth $386,000 after purchasing an additional 192 shares in the last quarter. Finally, Huntington National Bank grew its stake in shares of Walker & Dunlop by 49.6% in the 3rd quarter. Huntington National Bank now owns 585 shares of the financial services provider’s stock worth $49,000 after buying an additional 194 shares during the last quarter. Hedge funds and other institutional investors own 80.97% of the company’s stock.

Walker & Dunlop Stock Performance

The company has a market cap of $1.56 billion, a P/E ratio of 27.97 and a beta of 1.55. The stock has a 50-day moving average of $61.94 and a two-hundred day moving average of $71.78.

Walker & Dunlop Company Profile

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.