loanDepot (NYSE:LDI) Shares Gap Down After 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.

Shares of loanDepot, Inc. (NYSE:LDI - Get Free Report) gapped down before the market opened 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 trading hands.

Specifically, 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 transaction of $8,041,453.20. Following the sale, the chief executive officer owned 4,693,712 shares of the company's stock, valued at $12,391,399.68. The trade was a 39.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Anthony Li Hsieh sold 1,110,454 shares of loanDepot 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 sale, the chief executive officer directly owned 7,739,717 shares in the company, valued at $16,795,185.89. This trade represents a 12.55% decrease in their position. The disclosure for this sale can be found here.

Analysts Set New Price Targets

Several brokerages have weighed in on LDI. BTIG Research reissued a "neutral" rating on shares of loanDepot in a report on Wednesday. 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. Finally, Wall Street Zen lowered shares of loanDepot from a "hold" rating to a "sell" rating in a report on Saturday, August 16th. Two investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Reduce" and an average price target of $2.30.

loanDepot Price Performance

The company's fifty day moving average price is $2.04 and its 200 day moving average price is $1.55. 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 has a market capitalization of $1.41 billion, a price-to-earnings ratio of -12.95 and a beta of 3.38.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of LDI. Alpine Global Management LLC acquired a new position in shares of loanDepot in the 4th quarter valued at about $33,000. Wilshire Advisors LLC boosted its stake in 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 purchasing an additional 7,899 shares during the period. Invesco Ltd. acquired a new position in loanDepot during the 1st quarter valued at about $44,000. Los Angeles Capital Management LLC acquired a new position in loanDepot during the 2nd quarter valued at about $46,000. Finally, Vanguard Personalized Indexing Management LLC boosted its stake in loanDepot by 130.3% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 37,272 shares of the company's stock valued at $47,000 after purchasing an additional 21,091 shares during the period. 39.39% of the stock is owned by institutional investors and hedge funds.

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.