loanDepot (NYSE:LDI) Downgraded to "Sell" Rating by Wall Street Zen

Key Points

• loanDepot has been downgraded by Wall Street Zen from a "hold" rating to a "sell" rating, reflecting analysts' concerns about the company's performance.
• UBS Group has increased its price target for loanDepot shares from $1.25 to $1.40 while maintaining a "neutral" rating.
• Insider trading reports show significant sales, with CEO Anthony Li Hsieh selling over 267,000 shares, which raises questions about insider confidence in the company's future.

Wall Street Zen cut shares of loanDepot (NYSE:LDI - Free Report) from a hold rating to a sell rating in a report published on Saturday morning.

Separately, UBS Group upped their target price on shares of loanDepot from $1.25 to $1.40 and gave the stock a "neutral" rating in a report on Wednesday, July 16th. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus target price of $2.30.

loanDepot Stock Performance

Shares of NYSE LDI traded up $0.0750 during midday trading on Friday, hitting $1.9150. The company's stock had a trading volume of 1,748,360 shares, compared to its average volume of 1,799,716. The stock has a fifty day moving average price of $1.61 and a 200 day moving average price of $1.44. loanDepot has a one year low of $1.01 and a one year high of $3.2250. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 6.71. The firm has a market capitalization of $633.73 million, a price-to-earnings ratio of -5.80 and a beta of 3.35.

Insiders Place Their Bets

In other news, CEO Anthony Li Hsieh sold 672,865 shares of the stock in a transaction on Monday, July 21st. The shares were sold at an average price of $2.02, for a total value of $1,359,187.30. Following the transaction, the chief executive officer owned 9,461,694 shares of the company's stock, valued at $19,112,621.88. This represents a 6.64% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Jeff Alexander Walsh sold 70,000 shares of the stock in a transaction on Monday, July 21st. The stock was sold at an average price of $2.01, for a total transaction of $140,700.00. Following the completion of the transaction, the insider directly owned 4,140,751 shares in the company, valued at $8,322,909.51. The trade was a 1.66% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,275,773 shares of company stock worth $2,569,193 in the last three months. Insiders own 78.05% of the company's stock.

Hedge Funds Weigh In On loanDepot

A number of institutional investors have recently made changes to their positions in LDI. Philosophy Capital Management LLC increased its holdings in shares of loanDepot by 73.3% in the 1st quarter. Philosophy Capital Management LLC now owns 4,141,164 shares of the company's stock worth $4,928,000 after buying an additional 1,751,245 shares during the last quarter. Philadelphia Financial Management of San Francisco LLC bought a new position in shares of loanDepot in the 1st quarter worth $1,469,000. Geode Capital Management LLC increased its holdings in shares of loanDepot by 134.4% in the 2nd quarter. Geode Capital Management LLC now owns 1,925,712 shares of the company's stock worth $2,446,000 after buying an additional 1,104,021 shares during the last quarter. Tidal Investments LLC bought a new position in shares of loanDepot in the 4th quarter worth $1,691,000. Finally, Charles Schwab Investment Management Inc. increased its holdings in shares of loanDepot by 1,671.4% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 655,137 shares of the company's stock worth $780,000 after buying an additional 618,153 shares during the last quarter. Institutional investors own 39.39% of the company's stock.

loanDepot Company Profile

loanDepot, Inc engages in originating, financing, selling, and servicing residential mortgage loans in the United States. The company offers conventional agency-conforming and prime jumbo, federal assistance residential mortgage, and home equity loans. It also provides settlement services, which include captive title and escrow business; real estate services that cover captive real estate referral business; and insurance services, including services to homeowners, as well as other consumer insurance policies.