loanDepot (NYSE:LDI) Shares Gap Up - Still a Buy?

Key Points

• loanDepot's stock opened at $3.62 after closing at $3.29, and the latest trading price was $3.51 with significant trading volume of over 6.5 million shares.
• Several analysts have provided mixed ratings on the stock, with BTIG Research maintaining a "neutral" rating while Wall Street Zen downgraded it to "sell"; the average price target now stands at $2.30.
• CEO Anthony Li Hsieh sold over 3 million shares recently, reflecting a 39.36% decrease in his ownership, while insiders have collectively sold nearly 9.7 million shares in the past 90 days.

loanDepot, Inc. (NYSE:LDI - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $3.29, but opened at $3.62. loanDepot shares last traded at $3.51, with a volume of 6,510,217 shares traded.

Wall Street Analyst Weigh In

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

loanDepot Stock Up 6.0%

The firm'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 current ratio of 1.18 and a quick ratio of 1.18. The firm has a market capitalization of $1.50 billion, a P/E ratio of -13.71 and a beta of 3.37.

Insider Activity

In other news, CEO Anthony Li Hsieh sold 3,046,005 shares of the stock in a transaction that occurred 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 completion of the transaction, the chief executive officer directly owned 4,693,712 shares in the company, valued at $12,391,399.68. This trade represents a 39.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders have sold 13,120,160 shares of company stock valued at $34,112,201 in the last ninety days. Company insiders own 83.04% of the company's stock.

Institutional Trading of loanDepot

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Philosophy Capital Management LLC lifted its stake in loanDepot by 73.3% during the first quarter. Philosophy Capital Management LLC now owns 4,141,164 shares of the company's stock valued at $4,928,000 after purchasing an additional 1,751,245 shares during the last quarter. Knightsbridge Asset Management LLC lifted its stake in loanDepot by 0.6% during the first quarter. Knightsbridge Asset Management LLC now owns 3,105,873 shares of the company's stock valued at $3,696,000 after purchasing an additional 17,763 shares during the last quarter. Geode Capital Management LLC lifted its stake in loanDepot by 134.4% during the second quarter. Geode Capital Management LLC now owns 1,925,712 shares of the company's stock valued at $2,446,000 after purchasing an additional 1,104,021 shares during the last quarter. Philadelphia Financial Management of San Francisco LLC acquired a new stake in loanDepot during the first quarter valued at approximately $1,469,000. Finally, Wolverine Asset Management LLC lifted its stake in loanDepot by 15.6% during the second quarter. Wolverine Asset Management LLC now owns 1,178,649 shares of the company's stock valued at $1,497,000 after purchasing an additional 158,739 shares during the last quarter. 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.