Walker & Dunlop (NYSE:WD) Issues Earnings Results

Walker & Dunlop (NYSE:WD) released its quarterly earnings data on Thursday. The financial services provider reported $0.28 earnings per share for the quarter, missing the consensus estimate of $1.46 by ($1.18), FiscalAI reports. Walker & Dunlop had a return on equity of 8.85% and a net margin of 9.31%.The firm had revenue of $340.02 million for the quarter, compared to analyst estimates of $343.66 million. During the same quarter in the prior year, the firm earned $1.32 earnings per share. The firm’s revenue for the quarter was down .4% on a year-over-year basis.

Here are the key takeaways from Walker & Dunlop’s conference call:

• Q4 included $66 million of impairments and credit losses tied to loan repurchases and exiting affordable assets — including a $29 million charge related to the Freddie Mac investigation — which produced a diluted loss per share of $0.41 (versus $1.04 EPS excluding these charges).
• Core capital-markets momentum was strong: transaction volumes reached $18 billion in Q4 (up from $7B in Q1), multifamily sales grew to $4.5B in Q4, and W&D finished 2025 as the #1 Fannie Mae DUS lender and the #2 GSE originator with 11.2% market share.
• The Freddie Mac review found borrower fraud but no employee collusion; the origination team at fault is no longer employed, W&D has indemnified or repurchased $222 million of loans since 2024, and repurchases represent ~19 basis points of the $115B GSE portfolio with cumulative losses of ~4 bps.
• Balance-sheet and capital actions: year-end cash was $299 million, management expects to recover $25M–$35M from asset sales and eliminate ~$4M–$5M of quarterly operating costs, and the board raised the quarterly dividend to $0.68.
• Management launched the “Journey to ’30” growth plan emphasizing capital markets, WDSuite/technology and AI, and a bigger portfolio recapture target (aiming to boost recapture and add ~ $10B of originations), while guiding 2026 EPS of $3.50–$4.00 and adjusted core EPS of $4.50–$5.00.

Walker & Dunlop Stock Performance

NYSE:WD traded down $1.58 during mid-day trading on Friday, reaching $45.88. 1,473,500 shares of the company’s stock were exchanged, compared to its average volume of 297,974. Walker & Dunlop has a one year low of $42.12 and a one year high of $90.00. The business’s fifty day simple moving average is $61.94 and its two-hundred day simple moving average is $71.78. The firm has a market capitalization of $1.56 billion, a PE ratio of 13.61 and a beta of 1.55.

Walker & Dunlop Increases Dividend

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

Analysts Set New Price Targets

Several research firms have issued reports on WD. Jefferies Financial Group initiated coverage on Walker & Dunlop in a research note on Friday, December 19th. They issued a “buy” rating and a $75.00 price objective on the stock. Citigroup restated a “market outperform” rating on shares of Walker & Dunlop in a research note on Friday, December 5th. Wall Street Zen cut shares of Walker & Dunlop from a “hold” rating to a “sell” rating in a research report on Saturday, November 8th. Keefe, Bruyette & Woods decreased their price objective on shares of Walker & Dunlop from $80.00 to $65.00 and set an “outperform” rating on the stock in a report on Friday. 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 given a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $81.25.

Institutional Investors Weigh In On Walker & Dunlop

A number of hedge funds and other institutional investors have recently made changes to their positions in WD. Strs Ohio bought a new position in shares of Walker & Dunlop in the 1st quarter valued at $51,000. Empowered Funds LLC acquired a new position in Walker & Dunlop during the fourth quarter worth about $62,000. iSAM Funds UK Ltd acquired a new stake in shares of Walker & Dunlop in the 3rd quarter valued at approximately $139,000. Quadrant Capital Group LLC bought a new stake in shares of Walker & Dunlop during the 3rd quarter valued at approximately $176,000. Finally, CIBC Bancorp USA Inc. acquired a new position in Walker & Dunlop during the 3rd quarter worth approximately $294,000. 80.97% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Walker & Dunlop

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

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.