Can This Real Estate Stock Build On Its Huge 2020?

Walker & Dunlop stock is up 7% year-to-date

Mar 22, 2021 at 10:48 AM
facebook twitter linkedin


Walker & Dunlop, Inc. (NYSE:WD) is one of the largest commercial real estate finance companies in the United States. The company provides a range of capital solutions for all commercial real estate asset classes, as well as investment sales brokerage services to owners of multifamily properties. Walker & Dunlop's employs over 1000 professionals and operates 41 offices across the nation.

On March 15, Walker & Dunlop announced its acquisition of Tender Hearts Assisted Living, a 50-unit facility located in Green Bay, Wisconsin. Walker & Dunlop was able to obtain a $9,089,800 U.S. Department of Housing and Urban Development loan for the $10,100,000 acquisition. The financing structure also included an $800,000 seller note, bringing the combined loan-to-cost to 98%.

Walker & Dunlop stock has increased 164% year-over-year and over 300% since its four-year low of $24.55 on April 3. The shares are fresh off a March 18 record high of $113.79. Additionally, Walker & Dunlop offers a $2.00 forward dividend, which equates to a dividend yield of 1.85%.

Fundamentally, Walker & Dunlop stock has a decent valuation with a price-earnings ratio of 13.33. WD also has a forward price-earnings ratio of 10.99, which is extremely attractive for a company that has grown revenues by more than $350 million or 50% since fiscal 2017. For fiscal 2020, Walker & Dunlop reported revenues of $1.08 billion, up from $817 million in fiscal 2019. On the bottom line, the company added about $75 million in net income this past year, bringing their total up to $246 million. One of the biggest concerns for potential investors in Walker & Dunlop stock is its total debt of $2.91 billion and its lack of cash. WD has just $370.88 million in cash and cash equivalents. Nonetheless, Walker & Dunlop is currently presenting an interesting investment opportunity for value investors.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners