loanDepot (NYSE:LDI) Shares Gap Up - Should You 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)'s stock price gapped up before the market opened 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.

Analyst Upgrades and Downgrades

LDI has been the subject of several recent research reports. BTIG Research reissued a "neutral" rating on shares of loanDepot in a research note on Wednesday. Wall Street Zen cut loanDepot from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. Finally, UBS Group lifted their target price on loanDepot from $1.40 to $1.90 and gave the stock a "neutral" rating in a research report on Wednesday, August 20th. Two 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, the company has an average rating of "Reduce" and an average price target of $2.30.

loanDepot Trading Up 9.0%

The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 6.71. The firm has a market cap of $1.19 billion, a price-to-earnings ratio of -10.86 and a beta of 3.37. The business has a 50 day moving average of $1.88 and a 200 day moving average of $1.50.

Insiders Place Their Bets

In related news, CEO Anthony Li Hsieh sold 3,046,005 shares of the stock in a transaction on Friday, September 5th. The stock was sold at an average price of $2.64, for a total value of $8,041,453.20. Following the completion of the sale, the chief executive officer directly owned 4,693,712 shares in the company, valued at approximately $12,391,399.68. This represents a 39.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders have sold 9,676,448 shares of company stock worth $21,710,137 over the last 90 days. Insiders own 83.04% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of LDI. Dimensional Fund Advisors LP increased its holdings in loanDepot by 83.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 344,705 shares of the company's stock worth $703,000 after purchasing an additional 157,274 shares during the last quarter. Northern Trust Corp increased its stake in shares of loanDepot by 11.4% in the fourth quarter. Northern Trust Corp now owns 157,130 shares of the company's stock worth $321,000 after buying an additional 16,033 shares during the last quarter. Cetera Investment Advisers raised its holdings in loanDepot by 11.8% in the fourth quarter. Cetera Investment Advisers now owns 103,148 shares of the company's stock valued at $210,000 after acquiring an additional 10,846 shares in the last quarter. Cubist Systematic Strategies LLC bought a new position in loanDepot during the 4th quarter valued at $301,000. Finally, D. E. Shaw & Co. Inc. grew its holdings in loanDepot by 184.1% during the 4th quarter. D. E. Shaw & Co. Inc. now owns 170,441 shares of the company's stock worth $348,000 after acquiring an additional 110,448 shares in the last quarter. Hedge funds and other institutional investors own 39.39% of the company's stock.

About loanDepot

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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