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

Key Points

• Analyst consensus: Five brokers assign loanDepot an average rating of "Strong Sell" (three sell, two hold) with a one‑year average price target of about $2.38.
• Weak results and metrics: The company missed quarterly expectations (EPS -$0.10 vs. -$0.04 est.), reported revenue below estimates, has negative net margin and ROE, and carries high leverage (debt/equity ~8.22).
• Insider selling: CEO Anthony Li Hsieh sold 884,495 shares at roughly $2.70, and corporate insiders are reported to own about 83% of the stock.

Shares of loanDepot, Inc. (NYSE:LDI - Get Free Report) have been assigned an average recommendation of "Strong Sell" from the five ratings firms that are presently covering the company, MarketBeat.com reports. Three equities research analysts have rated the stock with a sell recommendation and two have given a hold recommendation to the company. The average 1 year price objective among analysts that have updated their coverage on the stock in the last year is $2.3833.

LDI has been the topic of several recent analyst reports. Zacks Research downgraded loanDepot from a "hold" rating to a "strong sell" rating in a report on Wednesday, March 18th. The Goldman Sachs Group set a $2.40 price objective on loanDepot in a report on Tuesday, January 6th. Weiss Ratings restated a "sell (d-)" rating on shares of loanDepot in a research report on Thursday, January 22nd. Finally, BTIG Research reaffirmed a "neutral" rating on shares of loanDepot in a research note on Wednesday, March 11th.

loanDepot Price Performance

loanDepot stock opened at $1.42 on Tuesday. The business has a 50 day simple moving average of $1.74 and a 200 day simple moving average of $2.38. The company has a debt-to-equity ratio of 8.22, a current ratio of 1.14 and a quick ratio of 1.14. The company has a market capitalization of $474.07 million, a PE ratio of -4.88 and a beta of 3.55. loanDepot has a one year low of $1.02 and a one year high of $5.05.

loanDepot (NYSE:LDI - Get Free Report) last announced its quarterly earnings results on Tuesday, March 10th. The company reported ($0.10) earnings per share for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.06). loanDepot had a negative net margin of 5.27% and a negative return on equity of 18.29%. The company had revenue of $316.27 million during the quarter, compared to the consensus estimate of $333.29 million. On average, sell-side analysts forecast that loanDepot will post -0.23 EPS for the current fiscal year.

Insider Activity

In other news, CEO Anthony Li Hsieh sold 884,495 shares of the firm's stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $2.70, for a total value of $2,388,136.50. The transaction was disclosed in a document filed with the SEC, which is available through this link. 83.04% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On loanDepot

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Invesco Ltd. bought a new stake in shares of loanDepot in the 1st quarter valued at about $44,000. Goldman Sachs Group Inc. boosted its stake in loanDepot by 30.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 366,435 shares of the company's stock worth $436,000 after acquiring an additional 85,129 shares during the last quarter. Jane Street Group LLC bought a new position in loanDepot during the 1st quarter worth approximately $122,000. Geode Capital Management LLC grew its holdings in loanDepot by 134.4% during the second quarter. Geode Capital Management LLC now owns 1,925,712 shares of the company's stock valued at $2,446,000 after purchasing an additional 1,104,021 shares during the period. Finally, New York State Common Retirement Fund acquired a new position in loanDepot during the second quarter valued at approximately $98,000. Institutional investors own 39.39% of the company's stock.

About loanDepot

loanDepot, Inc NYSE: LDI is a leading non-bank consumer lender that provides a broad range of home and personal financing products through a digitally enabled platform. The company specializes in originating and servicing purchase and refinance mortgage loans, home equity lines of credit (HELOCs), and personal loans. Through its proprietary mello™ technology suite, loanDepot streamlines the application, underwriting, and closing processes for borrowers and real estate professionals, emphasizing speed, transparency, and a seamless digital experience.

Founded in 2010 by Anthony Hsieh, loanDepot has grown rapidly to become one of the largest independent mortgage lenders in the United States.

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