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.

loanDepot, Inc. (NYSE:LDI - Get Free Report)'s stock price gapped down prior to trading on Wednesday after an insider sold shares in the company. 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 trading hands.

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

Wall Street Analyst Weigh In

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

loanDepot Stock Performance

The company has a debt-to-equity ratio of 6.71, a quick ratio of 1.18 and a current ratio of 1.18. The firm's 50-day moving average price is $2.32 and its two-hundred day moving average price is $1.64. The firm has a market capitalization of $1.23 billion, a price-to-earnings ratio of -11.27 and a beta of 3.38.

Institutional Trading of loanDepot

Several institutional investors have recently made changes to their positions in the business. Wilshire Advisors LLC boosted its position in shares of loanDepot by 39.8% during the 1st quarter. Wilshire Advisors LLC now owns 27,727 shares of the company's stock valued at $33,000 after acquiring an additional 7,899 shares in the last quarter. Cetera Investment Advisers boosted its position in loanDepot by 11.8% in the fourth quarter. Cetera Investment Advisers now owns 103,148 shares of the company's stock valued at $210,000 after buying an additional 10,846 shares in the last quarter. Capstone Financial Advisors Inc. boosted its position in loanDepot by 60.0% in the first quarter. Capstone Financial Advisors Inc. now owns 40,000 shares of the company's stock valued at $48,000 after buying an additional 15,000 shares in the last quarter. Alpine Global Management LLC acquired a new position in loanDepot in the fourth quarter valued at about $33,000. Finally, Northern Trust Corp boosted its position in loanDepot by 11.4% in the fourth quarter. Northern Trust Corp now owns 157,130 shares of the company's stock valued at $321,000 after buying an additional 16,033 shares in the last quarter. 39.39% of the stock is currently owned by institutional investors and hedge funds.

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.