Walker & Dunlop (WD)
NYSE:WD
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Walker & Dunlop
(NYSE:WD)
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Rating:52Neutral
Price Target:
$50.00
▼(-0.40% Downside)
Action:Reiterated
Date:05/22/26
The score is held back primarily by weak cash flow and higher leverage despite improving revenue momentum. Offsetting that, the latest earnings call signaled a clear operational rebound with reiterated guidance and strong volume/revenue/EPS trends, while valuation is helped by a high dividend yield. Technically, the stock remains in a longer-term downtrend with only tentative signs of near-term stabilization.
Positive Factors
Servicing portfolio scale
A $146B servicing portfolio that produces $85M of fees is a durable recurring revenue base. Servicing fees are less cyclical than origination fees, provide predictable cash flow, and scale with portfolio growth—supporting margin stability and long-term cash generation even when transaction volumes fluctuate.
Negative Factors
Elevated leverage
A meaningful increase in leverage to nearly 2.0x materially raises interest‑rate and refinancing sensitivity and constrains strategic optionality. With lower ROE and a higher debt load, the company faces greater funding risk and less capacity to absorb shocks or pursue accretive investments over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Servicing portfolio scale
A $146B servicing portfolio that produces $85M of fees is a durable recurring revenue base. Servicing fees are less cyclical than origination fees, provide predictable cash flow, and scale with portfolio growth—supporting margin stability and long-term cash generation even when transaction volumes fluctuate.
Read all positive factors
Walker & Dunlop Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Measures income from core operations for each segment before financing and taxes, isolating operational performance from one-time items. Useful for seeing where management is generating sustainable earnings and which segments are most efficient or require cost control.
Measures income from core operations for each segment before financing and taxes, isolating operational performance from one-time items. Useful for seeing where management is generating sustainable earnings and which segments are most efficient or require cost control.
Data provided by:
The Fly
The FlyWalker & Dunlop (WD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.71B
Dividend Yield4.42%
Average Volume (3M)302.49K
Price to Earnings (P/E)22.7
Beta (1Y)1.03
Revenue Growth12.71%
EPS Growth-30.75%
CountryUS
Employees1,394
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)2.07
Shares Outstanding34,331,240
10 Day Avg. Volume313,789
30 Day Avg. Volume302,487
Financial Highlights & Ratios
PEG Ratio-0.75
Price to Book (P/B)1.16
Price to Sales (P/S)1.63
P/FCF Ratio-2.95
Enterprise Value/Market Cap2.86
Enterprise Value/Revenue3.83
Enterprise Value/Gross Profit7.69
Enterprise Value/Ebitda12.72
Forecast
1Y Price Target
$68.00Price Target Upside35.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.62
Revenue Forecast (FY)$1.37B
Walker & Dunlop Business Overview & Revenue Model
Company Description
Walker & Dunlop, Inc., through its subsidiaries, originates, sells, and services a range of multifamily and other commercial real estate financing products and services for owners and developers of real estate in the United States. The company off...
How the Company Makes Money
Walker & Dunlop makes money primarily by earning fees tied to (1) originating and arranging commercial real estate loans and (2) servicing and managing those loans over time, supplemented by other capital markets and brokerage revenues.
Key reven...
Walker & Dunlop Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call communicated a clear operational and financial rebound: materially higher transaction volumes (+94% YoY), strong revenue and EPS growth (+27% and +475% YoY, respectively), improved segment profitability (notably Capital Markets turnaround) and a growing servicing portfolio that provides durable cash flow. The primary negatives are a still-elevated but shrinking loan repurchase exposure (~$192M), associated near-term expenses (~$10M in Q1) and ongoing GSE reviews with uncertain timing, plus investment sales remain modestly up (+4%). On balance, the positive performance metrics, scale gains, improved profitability, and confident guidance/pipeline outweigh the manageable repurchase and market-duration headwinds.Positive Updates
Record Transaction Volume Recovery
Total transaction volume of $13.7 billion in Q1 2026, up 94% year-over-year, driven by broad-based activity across the platform.
Negative Updates
Loan Repurchase Exposure and Related Costs
Total GSE loan repurchase exposure reduced from $222 million to $192 million but remains material; recorded approximately $10 million of repurchase-related expenses in Q1 (split between credit reserves and operating costs).
Read all updates
Q1-2026 Updates
Positive
Negative
Record Transaction Volume Recovery
Total transaction volume of $13.7 billion in Q1 2026, up 94% year-over-year, driven by broad-based activity across the platform.
Read all positive updates
Company Guidance
Management reiterated full‑year 2026 guidance predicated on a gradual stabilization in interest rates and a pickup in capital markets activity, saying they remain confident in achieving it given a healthy Q2 pipeline and a strong Q1 start (Q1 total transaction volume $13.7B; debt originations $11.8B; total revenues $301M; adjusted EBITDA $74M; diluted EPS $0.46). Key quantified targets and assumptions: reduce GSE loan repurchase exposure from $192M (down from $222M) to $100–125M by year‑end with two assets expected under contract in Q2, drive average transaction volume per banker/broker from a trailing‑12‑month $282M (up from $248M) to $300M by end‑2026, and execute the Journey to ’30 plan to grow to $2B of revenues by 2030. They also expect continued servicing portfolio growth (servicing portfolio $146B; servicing fees $85M) to produce steady cash flow, will maintain a $0.68 quarterly dividend, and retain $62M of share‑repurchase capacity after deploying $13M (283k shares at $47.13) in Q1.Walker & Dunlop Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
54
Neutral
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.28B | 1.23B | 1.13B | 1.05B | 1.26B | 1.26B |
| Gross Profit | 636.13M | 756.94M | 503.56M | 471.67M | 617.15M | 647.71M |
| EBITDA | 384.68M | 382.39M | 351.73M | 364.45M | 486.48M | 569.23M |
| Net Income | 71.19M | 57.08M | 108.17M | 107.36M | 213.82M | 265.76M |
Balance Sheet | ||||||
| Total Assets | 6.17B | 5.06B | 4.38B | 4.05B | 4.05B | 5.21B |
| Cash, Cash Equivalents and Short-Term Investments | 192.53M | 299.31M | 279.27M | 328.70M | 225.95M | 305.63M |
| Total Debt | 3.36B | 2.25B | 1.66B | 1.47B | 1.32B | 2.71B |
| Total Liabilities | 4.43B | 3.31B | 2.62B | 2.31B | 2.33B | 3.63B |
| Stockholders Equity | 1.72B | 1.74B | 1.75B | 1.72B | 1.69B | 1.55B |
Cash Flow | ||||||
| Free Cash Flow | -1.54B | -680.08M | 116.40M | -16.72M | 1.56B | 861.25M |
| Operating Cash Flow | -1.53B | -664.31M | 129.36M | -518.00K | 1.58B | 870.46M |
| Investing Cash Flow | -78.04M | -77.34M | -38.13M | 126.87M | -133.78M | -377.55M |
| Financing Cash Flow | 1.61B | 758.13M | -154.73M | 6.77M | -1.58B | -457.73M |
Walker & Dunlop Technical Analysis
Negative
50.20
Price Trends
48.68
Negative
52.29
Negative
62.19
Negative
Market Momentum
-0.17
Positive
43.45
Neutral
34.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WD, the sentiment is Negative. The current price of 50.2 is below the 20-day moving average (MA) of 50.96, above the 50-day MA of 48.68, and below the 200-day MA of 62.19, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 43.45 is Neutral, neither overbought nor oversold. The STOCH value of 34.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WD.
Walker & Dunlop Risk Analysis
Walker & Dunlop disclosed 30 risk factors in its most recent earnings report. Walker & Dunlop reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Walker & Dunlop Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $679.51M | 6.10 | 16.69% | ― | 38.14% | 34.02% | |
56 Neutral | $4.36B | 8.29 | 12.02% | 0.90% | 24.55% | 43.82% | |
53 Neutral | $39.70B | 152.91 | 1.53% | ― | 73.75% | 269.75% | |
52 Neutral | $1.71B | 22.67 | 4.08% | 4.42% | 12.71% | -30.75% | |
42 Neutral | $422.28M | -3.45 | -32.25% | ― | 14.29% | 21.88% |
* Financial Sector Average
WD
Walker & Dunlop
48.32
-16.33
-25.26%
PFSI
PennyMac Financial
80.60
-13.21
-14.08%
LDI
loanDepot
1.18
-0.09
-7.09%
VEL
Velocity Financial
17.13
0.31
1.84%
RKT
Rocket Companies
12.94
0.47
3.77%
Walker & Dunlop Corporate Events
Executive/Board ChangesShareholder Meetings
Walker & Dunlop Shareholders Back Board, Auditor, Compensation
Positive
May 21, 2026
At its May 19, 2026 Annual Meeting of Stockholders, Walker Dunlop shareholders elected eight directors, including Ernest Freedman, Jeffery R. Hayward, Ellen Levy, Gary S. Pinkus, John Rice, Dana L. Schmaltz, William M. Walker, and Donna Wells, to...
Business Operations and StrategyFinancial Disclosures
Walker & Dunlop Hosts Virtual Investor Day on Strategy
Positive
Mar 10, 2026
Walker Dunlop plans to host a virtual Investor Day on March 10, 2026, featuring senior management presentations and a QA session to outline its long-term growth strategy. The event will highlight the firm’s five-year outlook, branded the Jo...
Business Operations and StrategyPrivate Placements and Financing
Walker & Dunlop Expands Warehousing Credit Facility with PNC
Positive
Mar 4, 2026
On March 2, 2026, Walker Dunlop, Inc. and its operating subsidiary amended their warehousing credit and security agreement with PNC Bank, extending the facility’s maturity to March 1, 2027 and reducing the bulge commitment fee. The amendmen...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.