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

Key Points

• loanDepot's shares fell from a closing price of $3.81 to $3.52 after significant insider selling, with the stock last trading at $3.29 and a volume of 8,770,559 shares.
• CEO Anthony Li Hsieh sold a total of over 4 million shares in two transactions, leading to a reported 39.36% decrease in his ownership stake.
• Brokerages are mixed on loanDepot's outlook, with UBS raising its price target to $1.90 while Wall Street Zen downgraded to a "sell" rating, resulting in a consensus target price of $2.30.

loanDepot, Inc. (NYSE:LDI - Get Free Report) gapped down prior to trading on Tuesday following insider selling activity. The stock had previously closed at $3.81, but opened at $3.52. loanDepot shares last traded at $3.29, with a volume of 8,770,559 shares changing hands.

Specifically, CEO Anthony Li Hsieh sold 3,046,005 shares of the business's 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 sale, the chief executive officer owned 4,693,712 shares in the company, valued at approximately $12,391,399.68. The trade was a 39.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Anthony Li Hsieh sold 1,110,454 shares of the business's stock in a transaction on Thursday, September 4th. The stock was sold at an average price of $2.17, for a total transaction of $2,409,685.18. Following the completion of the sale, the chief executive officer owned 7,739,717 shares in the company, valued at $16,795,185.89. This represents a 12.55% decrease in their position. The disclosure for this sale can be found here.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on LDI. UBS Group boosted their price target on shares of loanDepot from $1.40 to $1.90 and gave the stock a "neutral" rating in a research report on Wednesday, August 20th. Wall Street Zen cut shares of loanDepot from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. Finally, BTIG Research began coverage on shares of loanDepot in a research report on Monday, August 18th. They issued a "neutral" rating on the stock. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, loanDepot currently has a consensus rating of "Reduce" and a consensus target price of $2.30.

loanDepot Price Performance

The company has a debt-to-equity ratio of 6.71, a current ratio of 1.18 and a quick ratio of 1.18. The firm has a market cap of $1.10 billion, a P/E ratio of -10.13 and a beta of 3.37. The stock's 50-day simple moving average is $1.84 and its two-hundred day simple moving average is $1.49.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Alpine Global Management LLC bought a new position in loanDepot during the fourth quarter valued at $33,000. Wilshire Advisors LLC increased its position in loanDepot by 39.8% during the first 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 during the last quarter. Los Angeles Capital Management LLC bought a new position in loanDepot during the second quarter valued at $46,000. Invesco Ltd. bought a new position in loanDepot during the first quarter valued at $44,000. Finally, Vanguard Personalized Indexing Management LLC increased its position in loanDepot by 130.3% during the second quarter. Vanguard Personalized Indexing Management LLC now owns 37,272 shares of the company's stock valued at $47,000 after acquiring an additional 21,091 shares during the last quarter. 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.

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