loanDepot (NYSE:LDI) Shares Gap Down After Insider Selling

Key Points

• loanDepot shares gapped down from $4.44 to $4.26 following an insider selling of 1,350,000 shares by CEO Anthony Li Hsieh, impacting market sentiment.
• Analysts have mixed views on loanDepot, with UBS raising its price target to $1.90, while Wall Street Zen issued a sell rating, reflecting concerns about the stock's performance.
• The company's debt-to-equity ratio stands at 6.71, indicating potential financial risks, while hedge funds own approximately 39.39% of its stock, suggesting institutional interest despite the recent fluctuations.

Shares of loanDepot, Inc. (NYSE:LDI - Get Free Report) gapped down prior to trading on Wednesday following insider selling activity. The stock had previously closed at $4.44, but opened at $4.26. loanDepot shares last traded at $4.33, with a volume of 3,453,302 shares changing hands.

Specifically, CEO Anthony Li Hsieh sold 1,350,000 shares of the firm's stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $4.61, for a total transaction of $6,223,500.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Anthony Li Hsieh sold 1,300,000 shares of the firm's stock in a transaction that occurred on Friday, September 12th. The stock was sold at an average price of $4.10, for a total transaction of $5,330,000.00. Following the sale, the chief executive officer directly owned 1,350,000 shares of the company's stock, valued at approximately $5,535,000. The trade was a 49.06% decrease in their position. The disclosure for this sale can be found here. In other news, CAO Darren Graeler sold 100,000 shares of the firm's stock in a transaction that occurred on Thursday, September 11th. The shares were 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 of the company's stock, valued at approximately $945,445.30. This trade represents a 31.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link.

Analyst Upgrades and Downgrades

LDI has been the subject of several recent analyst reports. BTIG Research reaffirmed a "neutral" rating on shares of loanDepot in a report on Wednesday, September 10th. Wall Street Zen lowered shares of loanDepot from a "hold" rating to a "sell" rating in a report on Saturday, August 16th. Finally, UBS Group raised their price objective on shares of loanDepot from $1.40 to $1.90 and gave the stock a "neutral" rating in a report on Wednesday, August 20th. Two investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus price target of $2.30.

loanDepot Trading Down 10.3%

The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 6.71. The firm has a market cap of $1.35 billion, a price-to-earnings ratio of -12.39 and a beta of 3.38. The business's fifty day moving average is $2.28 and its two-hundred day moving average is $1.63.

Institutional Trading of loanDepot

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Continental Advisors LLC acquired a new stake in shares of loanDepot in the second quarter valued at approximately $656,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in shares of loanDepot in the second quarter valued at approximately $57,000. Cerity Partners LLC bought a new position in loanDepot in the second quarter valued at approximately $116,000. Invesco Ltd. boosted its stake 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 last quarter. Finally, New York State Common Retirement Fund bought a new position in loanDepot in the second quarter valued at approximately $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.