loanDepot (NYSE:LDI) Shares Gap Up - Here's Why

Key Points

• Shares gapped up premarket from $2.44 to $2.81 and were last trading around $2.93 on volume ~3.2 million shares.
• Analysts are mixed but cautious: two Hold and two Sell ratings produce a MarketBeat consensus of "Reduce" with a $2.38 average target price (range of $1.75–$3.00).
• While loanDepot beat quarterly EPS and revenue estimates, it remains unprofitable with a high debt-to-equity ratio (6.94), negative margins/ROE, an expected -0.23 EPS for the year, and significant insider selling despite insiders owning 78.05% of shares.

loanDepot, Inc. (NYSE:LDI - Get Free Report) shares gapped up before the market opened on Friday . The stock had previously closed at $2.44, but opened at $2.81. loanDepot shares last traded at $2.9250, with a volume of 3,198,511 shares traded.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on LDI shares. Wall Street Zen raised loanDepot from a "sell" rating to a "hold" rating in a report on Sunday, November 9th. The Goldman Sachs Group set a $2.40 target price on shares of loanDepot in a research report on Tuesday. UBS Group boosted their target price on loanDepot from $1.90 to $3.00 and gave the company a "neutral" rating in a research report on Friday, October 10th. Morgan Stanley set a $1.75 target price on loanDepot in a report on Monday, December 1st. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of loanDepot in a research report on Wednesday, October 8th. Two research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, loanDepot presently has a consensus rating of "Reduce" and a consensus target price of $2.38.

loanDepot Stock Performance

The company has a debt-to-equity ratio of 6.94, a current ratio of 1.19 and a quick ratio of 1.19. The company has a 50 day simple moving average of $2.54 and a 200-day simple moving average of $2.47. The firm has a market cap of $981.38 million, a PE ratio of -8.15, a price-to-earnings-growth ratio of 0.56 and a beta of 3.47.

loanDepot (NYSE:LDI - Get Free Report) last posted its quarterly earnings results on Thursday, November 6th. The company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.04) by $0.02. The business had revenue of $325.16 million during the quarter, compared to the consensus estimate of $309.20 million. loanDepot had a negative net margin of 6.46% and a negative return on equity of 22.40%. As a group, equities research analysts anticipate that loanDepot, Inc. will post -0.23 EPS for the current year.

Insider Buying and Selling

In related news, Director Dawn G. Lepore sold 9,403 shares of the business's stock in a transaction dated Tuesday, December 2nd. The stock was sold at an average price of $2.73, for a total transaction of $25,670.19. Following the transaction, the director owned 183,745 shares in the company, valued at $501,623.85. The trade was a 4.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Anthony Li Hsieh sold 217,774 shares of the stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $2.28, for a total value of $496,524.72. The SEC filing for this sale provides additional information. Insiders have sold 5,890,027 shares of company stock valued at $15,651,377 over the last ninety days. 78.05% of the stock is owned by insiders.

Institutional Trading of loanDepot

Large investors have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. grew its holdings in shares of loanDepot by 30.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 366,435 shares of the company's stock worth $436,000 after acquiring an additional 85,129 shares during the period. Wolverine Asset Management LLC grew its stake in loanDepot by 15.6% in the second quarter. Wolverine Asset Management LLC now owns 1,178,649 shares of the company's stock worth $1,497,000 after purchasing an additional 158,739 shares during the period. Continental Advisors LLC bought a new position in loanDepot in the second quarter worth $656,000. Wilshire Advisors LLC raised its holdings in loanDepot by 39.8% in the first quarter. Wilshire Advisors LLC now owns 27,727 shares of the company's stock worth $33,000 after purchasing an additional 7,899 shares in the last quarter. Finally, MAI Capital Management purchased a new position in loanDepot during the second quarter valued at $53,000. Institutional investors own 39.39% of the company's stock.

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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