How W&D Plans to Ride Out The Turmoil

Freddie Mac headquarters

BETHESDA, MD—Walker & Dunlop reported its fourth quarter and fiscal year 2015 results with its year over year increases in income. For the quarter, net income rose 26% from same period the previous year, to $20.4 million. For the year, it rose by 60% to $82.1 million. The company also announced it would buy back about $75 million of its stock, a move that, generally speaking, has gotten a bad rap in this current cycle as it is perceived to be done largely to make the stock look more attractive to investors and fatten executives paychecks. W&D, though, appears to be old school on this. Another, more traditional reason companies might buy back a stock is to plow the proceeds back into operations. This is especially smart to do if management believes the stock is undervalued. While CEO Willy Walker didn’t discuss W&D’s current stock price (which was $19.66 per share after Thursday’s close; the stock has ranged between $15.87 and $33.17 per share for the last 52 weeks) during the company’s earnings call other than in the broadest of terms (“given the current sell-off in our stock…”) he did explain how the company will be using the proceeds. It will