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

Key Points

• loanDepot shares gapped down pre-market from $1.79 to $1.72 and were last at $1.765, trading down about 1.6% with roughly 392,449 shares changing hands.
• Analysts have a consensus rating of Strong Sell with an average price target of $2.38; notable notes include a $2.40 target from Goldman Sachs and a "strong sell" downgrade from Zacks.
• The company missed quarterly expectations—EPS of ($0.10) vs. ($0.04) expected and revenue $316.3M vs. $333.3M—while reporting negative profitability and high leverage (debt-to-equity 8.22) with a market cap near $590M.

loanDepot, Inc. (NYSE:LDI - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $1.79, but opened at $1.72. loanDepot shares last traded at $1.7650, with a volume of 392,449 shares changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on LDI shares. The Goldman Sachs Group set a $2.40 price target on loanDepot in a research note on Tuesday, January 6th. Zacks Research cut loanDepot from a "hold" rating to a "strong sell" rating in a research note on Wednesday, March 18th. Weiss Ratings reissued a "sell (d-)" rating on shares of loanDepot in a research note on Thursday, January 22nd. Finally, BTIG Research reissued a "neutral" rating on shares of loanDepot in a research note on Wednesday, March 11th. Two research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Strong Sell" and an average price target of $2.38.

loanDepot Trading Down 1.6%

The firm has a market cap of $589.99 million, a P/E ratio of -6.07 and a beta of 3.55. The company has a 50 day moving average of $1.70 and a 200 day moving average of $2.33. The company has a debt-to-equity ratio of 8.22, a quick ratio of 1.14 and a current ratio of 1.14.

loanDepot (NYSE:LDI - Get Free Report) last posted its earnings results on Tuesday, March 10th. The company reported ($0.10) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.06). loanDepot had a negative return on equity of 18.29% and a negative net margin of 5.27%.The company had revenue of $316.27 million during the quarter, compared to analyst estimates of $333.29 million. Analysts predict that loanDepot, Inc. will post -0.23 EPS for the current fiscal year.

Institutional Investors Weigh In On loanDepot

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. State Street Corp lifted its holdings in loanDepot by 0.4% in the 4th quarter. State Street Corp now owns 1,640,154 shares of the company's stock worth $3,395,000 after purchasing an additional 5,800 shares during the last quarter. LPL Financial LLC lifted its holdings in loanDepot by 8.3% in the 4th quarter. LPL Financial LLC now owns 82,045 shares of the company's stock worth $170,000 after purchasing an additional 6,321 shares during the last quarter. Harbour Investments Inc. lifted its holdings in loanDepot by 94.7% in the 4th quarter. Harbour Investments Inc. now owns 17,522 shares of the company's stock worth $36,000 after purchasing an additional 8,522 shares during the last quarter. Jones Financial Companies Lllp lifted its holdings in loanDepot by 8,934.0% in the 3rd quarter. Jones Financial Companies Lllp now owns 9,034 shares of the company's stock worth $28,000 after purchasing an additional 8,934 shares during the last quarter. Finally, Traynor Capital Management Inc. acquired a new stake in loanDepot in the 3rd quarter worth approximately $31,000. 39.39% of the stock is currently owned by institutional investors and hedge funds.

About loanDepot

loanDepot, Inc NYSE: LDI is a leading non-bank consumer lender that provides a broad range of home and personal financing products through a digitally enabled platform. The company specializes in originating and servicing purchase and refinance mortgage loans, home equity lines of credit (HELOCs), and personal loans. Through its proprietary mello™ technology suite, loanDepot streamlines the application, underwriting, and closing processes for borrowers and real estate professionals, emphasizing speed, transparency, and a seamless digital experience.

Founded in 2010 by Anthony Hsieh, loanDepot has grown rapidly to become one of the largest independent mortgage lenders in the United States.

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