loanDepot, Inc. (NYSE:LDI) Receives Average Rating of "Strong Sell" from Brokerages

Key Points

• loanDepot received a consensus “Strong Sell” rating from five covering brokerages: three issued sell ratings and two assigned hold ratings. Analysts’ average 12-month price target is $1.92.
• LDI opened at $0.61, down 4.5%, with shares trading near their 52-week low of $0.57 versus a high of $3.80. The company also carries a high debt-to-equity ratio of 10.60.
• CEO Anthony Hsieh purchased 60,208 shares at an average price of $0.92, while insiders own 65.90% of the company; hedge funds and institutional investors hold another 39.39%.

loanDepot, Inc. (NYSE:LDI - Get Free Report) has earned a consensus recommendation of "Strong Sell" from the five ratings firms that are presently covering the stock, Marketbeat Ratings reports. Three investment analysts have rated the stock with a sell rating and two have given a hold rating to the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $1.92.

LDI has been the topic of a number of recent analyst reports. Zacks Research cut loanDepot from a "hold" rating to a "strong sell" rating in a report on Thursday, August 27th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of loanDepot in a research note on Friday, July 17th. Wall Street Zen upgraded loanDepot from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Finally, The Goldman Sachs Group set a $1.00 target price on loanDepot in a research note on Monday, August 10th.

Insider Activity

In related news, CEO Anthony Hsieh acquired 60,208 shares of loanDepot stock in a transaction dated Tuesday, September 1st. The shares were purchased at an average price of $0.92 per share, for a total transaction of $55,391.36. Following the completion of the transaction, the chief executive officer directly owned 1,000,000 shares in the company, valued at approximately $920,000. This represents a 6.41% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders have purchased a total of 1,000,000 shares of company stock worth $911,936 in the last quarter. Company insiders own 65.90% of the company's stock.

Hedge Funds Weigh In On loanDepot

Institutional investors have recently bought and sold shares of the stock. Squarepoint Ops LLC bought a new stake in loanDepot in the 2nd quarter valued at $70,000. Requisite Capital Management LLC grew its position in shares of loanDepot by 200.0% during the second quarter. Requisite Capital Management LLC now owns 60,000 shares of the company's stock valued at $75,000 after purchasing an additional 40,000 shares in the last quarter. Cullen Capital Management LLC purchased a new position in shares of loanDepot during the second quarter valued at about $347,000. Bank of New York Mellon Corp bought a new stake in shares of loanDepot in the second quarter worth about $359,000. Finally, Wasatch Advisors LP increased its holdings in shares of loanDepot by 36.2% in the second quarter. Wasatch Advisors LP now owns 2,296,300 shares of the company's stock worth $2,870,000 after purchasing an additional 609,893 shares during the last quarter. 39.39% of the stock is owned by hedge funds and other institutional investors.

loanDepot Stock Down 4.5%

LDI opened at $0.61 on Tuesday. The stock has a market cap of $205.06 million, a price-to-earnings ratio of -2.02 and a beta of 3.45. The company has a debt-to-equity ratio of 10.60, a quick ratio of 1.11 and a current ratio of 1.11. The firm's fifty day moving average is $0.84 and its 200 day moving average is $1.14. loanDepot has a fifty-two week low of $0.57 and a fifty-two week high of $3.80.

About loanDepot

loanDepot, Inc NYSE: LDI is a U.S.-based mortgage lending company that provides home financing through digital and traditional channels. Its primary business includes originating purchase mortgages, refinance loans and other residential lending products for consumers buying, refinancing or accessing equity in their homes.

The company operates a technology-enabled lending platform designed to simplify the mortgage application and underwriting process. loanDepot also provides related services, including mortgage servicing and support for borrowers throughout the life of their loans.

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