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Walter Investment Management Corp (NYSE: WAC) received a number of price target changes and ratings updates during the last week:

  • Walter Investment Management Corp had its “outperform” rating reaffirmed by analysts at Credit Suisse. They now have a $40.00 price target on the stock, down previously from $44.00.
  • Walter Investment Management Corp had its price target lowered by analysts at Keefe, Bruyette & Woods from $30.00 to $26.00. They now have a “market perform” rating on the stock.
  • Walter Investment Management Corp was downgraded by analysts at FBR Capital Markets from an “outperform” rating to a “market perform” rating. They now have a $28.00 price target on the stock, down previously from $32.00.
  • Walter Investment Management Corp was downgraded by analysts at Zacks from a “neutral” rating to an “underperform” rating. They now have a $24.20 price target on the stock.
  • Walter Investment Management Corp had its price target lowered by analysts at Compass Point from $23.00 to $18.00. They now have a “sell” rating on the stock. They wrote, “We reiterate our Sell rating and lower our price target on WAC to $18 from $23 following the 2Q14 earnings release. The second quarter earnings release was in-line with our expectations as a bounce back in amortization expense pushed servicing margins lower, origination earnings benefited from a larger HARP-eligible servicing portfolio, and the company guided to lower earnings in the back half of 2014. However, the vast majority of the 2Q14 earnings report was driven by HARP originations and there are a series of regulators investigating WAC’s servicing practices. “We expect the expense associated with addressing regulators concerns (as we have seen from other servicers) and the impact of refi burnout on origination revenue to make it difficult for WAC to sustain GAAP earnings above $0.50 per share over the next several quarters. Due to these pressures, we believe the consensus estimates for FY15 remain too high at $4.94 per share and do not reflect the true economic returns to shareholders. Our estimates for ‘adjusted’ operating earnings as reported by WAC in FY15 is $3.14 (apples to apples to street estimates), but on our interpretation of operating earnings, we estimate $2.55 for FY15. Our $18 price target is 7x our $2.55 estimate. We are adjusting our FY14E operating EPS to $3.50 from $2.83 due to this quarter’s results and elevated gain on sale revenue. Our FY15E operating EPS falls to $2.55 from $3.26.”

Walter Investment Management Corp (NYSE:WAC) traded up 1.52% on Wednesday, hitting $25.30. The stock had a trading volume of 629,043 shares. Walter Investment Management Corp has a 52 week low of $23.51 and a 52 week high of $41.85. The stock has a 50-day moving average of $27.3 and a 200-day moving average of $28.19. The company has a market cap of $953.9 million and a price-to-earnings ratio of 10.99.

Walter Investment Management Corp (NYSE:WAC) last announced its earnings results on Monday, August 11th. The company reported $1.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.22 by $0.03. The company had revenue of $413.71 million for the quarter, compared to the consensus estimate of $381.07 million. During the same quarter in the previous year, the company posted $4.75 earnings per share. The company’s revenue for the quarter was down 30.6% on a year-over-year basis. Analysts expect that Walter Investment Management Corp will post $5.42 EPS for the current fiscal year.

In other Walter Investment Management Corp news, CFO Gary Tillett purchased 7,900 shares of the company’s stock in a transaction that occurred on Wednesday, August 13th. The shares were purchased at an average price of $24.83 per share, for a total transaction of $196,157.00. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.

Walter Investment Management Corp., together with its subsidiaries, is a fee-based business services provider to the residential mortgage industry.

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