loanDepot (NYSE:LDI) Shares Down 8% - Should You Sell?

Key Points

• loanDepot's stock price fell 8% on Monday, closing at $2.83 after trading as low as $2.84, with a significant drop in share volume compared to its average.
• Analysts have given a mixed outlook on loanDepot, with ratings varying from "sell" to "hold," and a consensus price target set at $2.85.
• Recent insider sales indicate declining confidence, with significant stocks sold by key executives in August and September, furthering concerns about the company’s performance.

Shares of loanDepot, Inc. (NYSE:LDI - Get Free Report) traded down 8% on Monday . The stock traded as low as $2.84 and last traded at $2.83. 2,426,319 shares traded hands during trading, a decline of 28% from the average session volume of 3,377,113 shares. The stock had previously closed at $3.07.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the stock. Wall Street Zen upgraded shares of loanDepot from a "sell" rating to a "hold" rating in a research note on Saturday. UBS Group boosted their price target on shares of loanDepot from $1.90 to $3.00 and gave the company a "neutral" rating in a report on Friday. BTIG Research reissued a "neutral" rating on shares of loanDepot in a report on Wednesday, September 10th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of loanDepot in a report on Wednesday, October 8th. Two equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus price target of $2.85.

loanDepot Stock Down 6.0%

The firm has a market cap of $954.72 million, a price-to-earnings ratio of -8.71 and a beta of 3.45. The firm's fifty day moving average is $2.74 and its two-hundred day moving average is $1.82. 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 other loanDepot news, insider Jeff Alexander Walsh sold 70,000 shares of the business's stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $2.03, for a total value of $142,100.00. Following the sale, the insider directly owned 4,001,502 shares in the company, valued at approximately $8,123,049.06. The trade was a 1.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Darren Graeler sold 100,000 shares of the business's stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $4.30, for a total transaction of $430,000.00. Following the completion of the sale, the chief accounting officer owned 219,871 shares in the company, valued at approximately $945,445.30. This trade represents a 31.26% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 14,470,160 shares of company stock worth $40,335,701. 78.05% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On loanDepot

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Wilshire Advisors LLC raised its holdings in loanDepot by 39.8% during the 1st quarter. Wilshire Advisors LLC now owns 27,727 shares of the company's stock worth $33,000 after buying an additional 7,899 shares during the period. Voya Investment Management LLC acquired a new position in shares of loanDepot in the third quarter worth about $43,000. Invesco Ltd. acquired a new position in shares of loanDepot in the first quarter worth about $44,000. Los Angeles Capital Management LLC acquired a new position in shares of loanDepot in the second quarter worth about $46,000. Finally, Vanguard Personalized Indexing Management LLC boosted its holdings in shares of loanDepot by 130.3% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 37,272 shares of the company's stock worth $47,000 after buying an additional 21,091 shares during the period. 39.39% of the stock is currently owned by institutional investors.

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.

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