loanDepot (NYSE:LDI) Shares Down 7.7% - Should You Sell?

Key Points

• loanDepot's stock price fell by 7.7% during mid-day trading, reaching a low of $3.70 before closing at $3.79, significantly above the usual trading volume.
• Analysts have downgraded loanDepot's rating from "hold" to "sell," with a consensus price target of $2.30 and only two analysts rating the stock as "hold."
• CEO Anthony Li Hsieh sold over 3 million shares, representing a 39.36% decrease in his holdings, while insider sales in the last three months totaled approximately $40 million.

loanDepot, Inc. (NYSE:LDI - Get Free Report) traded down 7.7% during mid-day trading on Friday . The company traded as low as $3.70 and last traded at $3.79. 6,356,964 shares traded hands during mid-day trading, an increase of 121% from the average session volume of 2,874,964 shares. The stock had previously closed at $4.11.

Wall Street Analyst Weigh In

Several research firms have commented on LDI. Wall Street Zen downgraded shares of loanDepot from a "hold" rating to a "sell" rating in a report on Saturday, August 16th. UBS Group increased their target price on loanDepot from $1.40 to $1.90 and gave the company a "neutral" rating in a research report on Wednesday, August 20th. Finally, BTIG Research restated a "neutral" rating on shares of loanDepot in a research note on Wednesday, September 10th. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, loanDepot presently has a consensus rating of "Reduce" and a consensus price target of $2.30.

loanDepot Stock Performance

The stock has a market capitalization of $1.22 billion, a price-to-earnings ratio of -11.20 and a beta of 3.38. The firm has a fifty day moving average of $2.28 and a 200-day moving average of $1.63. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 6.71.

Insider Transactions at loanDepot

In other loanDepot news, CEO Anthony Li Hsieh sold 3,046,005 shares of the stock in a transaction on Friday, September 5th. The stock was sold at an average price of $2.64, for a total transaction of $8,041,453.20. Following the completion of the transaction, the chief executive officer directly owned 4,693,712 shares of the company's stock, valued at approximately $12,391,399.68. This trade represents a 39.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Over the last three months, insiders sold 14,470,160 shares of company stock valued at $40,335,701. Corporate insiders own 78.05% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LDI. Continental Advisors LLC acquired a new position in shares of loanDepot in the 2nd quarter valued at $656,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in shares of loanDepot during the second quarter valued at about $57,000. Cerity Partners LLC bought a new position in shares of loanDepot during the 2nd quarter valued at approximately $116,000. Invesco Ltd. lifted its stake in loanDepot by 204.1% in the 2nd quarter. Invesco Ltd. now owns 111,245 shares of the company's stock worth $141,000 after purchasing an additional 74,669 shares in the last quarter. Finally, New York State Common Retirement Fund purchased a new stake in shares of loanDepot during the 2nd quarter valued at $98,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.