Oppenheimer Reiterates a Hold Rating on Walter Investment

By Austin Angelo

In a report released today, Ben Chittenden from Oppenheimer reiterated a Hold rating on Walter Investment (NYSE: WAC). The company’s shares opened today at $1.60, close to its 52-week low of $1.50.

Chittenden noted:

“2016 wrapped up with Ditech showing “material weakness” in controls and processes. With such a statement/low earnings visibility, we were surprised there was not Q&A on the call. Like others in transition (OCN/PHH) WAC is having trouble bringing down expenses quickly enough to offset the slowing revenue backdrop as the company re- positions for the future. We’ve noticed a reoccurring theme with all three companies; unfortunately transitions take longer than expected and inevitably have hiccups along the way. WAC at least has a new management team that seems willing to make the tough choices to sell non-core businesses to de-lever the balance sheet.”

According to TipRanks.com, Chittenden is a 1-star analyst with an average return of -0.7% and a 48.6% success rate. Chittenden covers the Financial sector, focusing on stocks such as Sutherland Asset Management Corporation, America First Tax Exempt LP, and Discover Financial Services.

Walter Investment has an analyst consensus of Moderate Sell.

The company has a one year high of $8.51 and a one year low of $1.50. Currently, Walter Investment has an average volume of 400.7K.

Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is neutral on the stock. Most recently, in August 2016, Stuart Douglass Boyd, the SVP & Dep GC of WAC sold 8,780 shares for a total of $27,394.

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Walter Investment Management Corp operates as a mortgage banking company, which focuses on the servicing and origination of residential loans, including reverse loans. It operates through the following business segments: Servicing, Originations, Reverse Mortgage, and Other. The Servicing segment consists of operations that perform servicing for third-party credit owners of mortgage loans as well as complementary businesses consisting of an insurance agency serving residential loan borrowers and credit owners and a collections agency that performs collections of post charge-off deficiency balances for third parties. The Originations segment originates and purchases mortgage loans through the consumer originations and consumer direct channels. The Reverse Mortgage segment focuses on the origination or purchase, securitization and servicing of reverse loans. The Other segment consists of assets and liabilities of the Non-Residual Trusts, corporate debt, and asset the firm’s management business. The company was founded in 1958 and is headquartered in Tampa, FL.