loanDepot (NYSE:LDI) Stock Price Down 7.7% - Here's Why

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.

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

Analyst Ratings Changes

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

loanDepot Stock Performance

The business's 50-day moving average is $2.32 and its two-hundred day moving average is $1.64. The company has a debt-to-equity ratio of 6.71, a current ratio of 1.18 and a quick ratio of 1.18.

Insiders Place Their Bets

In related news, CEO Anthony Li Hsieh sold 3,046,005 shares of loanDepot stock in a transaction on Friday, September 5th. The shares were sold at an average price of $2.64, for a total value of $8,041,453.20. Following the transaction, the chief executive officer directly owned 4,693,712 shares in the company, valued at $12,391,399.68. This trade represents a 39.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. In the last 90 days, insiders have sold 14,470,160 shares of company stock valued at $40,335,701. Company insiders own 83.04% of the company's stock.

Institutional Investors Weigh In On loanDepot

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Continental Advisors LLC acquired a new stake in loanDepot in the second quarter valued at $656,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in loanDepot in the second quarter valued at $57,000. Cerity Partners LLC acquired a new stake in loanDepot in the second quarter valued at $116,000. Invesco Ltd. lifted its holdings in loanDepot by 204.1% in the second quarter. Invesco Ltd. now owns 111,245 shares of the company's stock valued at $141,000 after acquiring an additional 74,669 shares during the period. Finally, New York State Common Retirement Fund acquired a new stake in loanDepot in the second quarter valued at $98,000. Institutional investors and hedge funds own 39.39% of the company's stock.

About loanDepot

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.