Walker & Dunlop Stock Down 30% but Revenue Up 16%: Why This $6 Million Sale Stands Out

On February 13, 2026, First Sabrepoint Capital Management disclosed in an SEC filing that it sold 90,000 shares of Walker & Dunlop (WD +0.98%) for an estimated $6.39 million (based on quarterly average pricing).

What happened

According to a recent SEC filing dated February 13, 2026, First Sabrepoint Capital Management reduced its stake in Walker & Dunlop (WD +0.98%) by 90,000 shares. The estimated value of the shares sold was $6.39 million, calculated using the average price over the fourth quarter of 2025. The fund’s remaining position in Walker & Dunlop is now 30,000 shares, worth $1.80 million as of quarter-end.

What else to know

• This sale reduces the fund’s stake in Walker & Dunlop to 0.70% of its 13F AUM, down from 3.18% at the previous quarter-end.
• Top holdings after this filing include:
  • NYSE:TPB: $43.36 million (17.83% of AUM)
  • NASDAQ:FCFS: $31.08 million (12.78% of AUM)
  • NASDAQ:LAUR: $16.84 million (6.92% of AUM)
  • NASDAQ:CVCO: $15.95 million (6.56% of AUM)
  • NYSE:ATGE: $13.97 million (5.74% of AUM)
• As of February 12, 2026, shares of Walker & Dunlop were priced at $61.37, down 30.08% over the past year and underperforming the S&P 500 by 42.98 percentage points.
• The fund reported 24 total positions and $259.15 million in 13F reportable AUM at quarter-end.

Company overview

Company snapshot

• Walker & Dunlop offers multifamily and commercial real estate financing products, including first mortgage, construction, mezzanine, and bridge loans, as well as property sales brokerage and asset management services.
• The firm generates revenue primarily through loan origination fees, servicing fees, and advisory services within the commercial real estate finance sector.
• It serves real estate owners and developers across the United States, with a focus on multifamily, affordable, senior, and student housing markets.

Walker & Dunlop is a leading provider of commercial real estate finance solutions, leveraging a national platform to originate, sell, and service a diverse portfolio of loans. The company’s integrated business model combines loan origination, servicing, and advisory services, enabling it to capture multiple revenue streams across the real estate financing lifecycle. Its established industry relationships and broad product suite position it as a key intermediary for institutional capital and real estate operators nationwide.

What this transaction means for investors

Slashing an allocation from 3.18% of assets to just 0.70% signals more than routine trimming, especially when other holdings remain sizable and concentrated.

Operationally, Walker & Dunlop’s underlying business looks far healthier than the stock chart suggests. Third-quarter transaction volume climbed 34% year over year to $15.5 billion, while revenue rose 16% to $337.7 million and diluted EPS increased 15% to $0.98. The servicing portfolio reached $139.3 billion, up 4% from a year earlier, and year-to-date transaction volume is running 38% higher than in 2024.

Yet shares are down roughly 30% over the past year, badly trailing the broader market. Credit metrics are worth watching, with defaulted loans in the at-risk portfolio at 0.21% as of September 30. That is still modest, but trending higher year over year.

Compared with larger allocations to education and consumer names, the reduced exposure here suggests less appetite for rate-sensitive real estate finance despite improving volumes.

Long-term investors should weigh two forces: cyclical recovery in capital markets versus credit and rate risk. If transaction momentum holds and credit remains contained, the current multiple could look overly pessimistic.