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

Key Points

• loanDepot shares gapped up from $1.69 to $1.85 before trading at $1.76, amidst a trading volume of 319,764 shares.
• UBS Group set a $1.40 price target on loanDepot and rated the stock as "neutral," reflecting cautious outlook amid recent volatility.
• Insider sales included CEO Anthony Li Hsieh offloading over 672,000 shares at an average price of $2.02, marking a 6.64% decrease in his ownership stake.

loanDepot, Inc. (NYSE:LDI - Get Free Report)'s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $1.69, but opened at $1.85. loanDepot shares last traded at $1.76, with a volume of 319,764 shares trading hands.

Wall Street Analyst Weigh In

Separately, UBS Group boosted their price objective on loanDepot from $1.25 to $1.40 and gave the stock a "neutral" rating in a research note on Wednesday, July 16th.

loanDepot Stock Up 5.3%

The firm has a 50 day simple moving average of $1.46 and a two-hundred day simple moving average of $1.43. The company has a debt-to-equity ratio of 6.48, a current ratio of 1.18 and a quick ratio of 1.18. The stock has a market cap of $552.60 million, a price-to-earnings ratio of -3.72 and a beta of 3.35.

loanDepot (NYSE:LDI - Get Free Report) last released its earnings results on Tuesday, May 6th. The company reported ($0.15) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The company had revenue of $273.62 million during the quarter, compared to analyst estimates of $275.11 million. loanDepot had a negative net margin of 7.74% and a negative return on equity of 18.41%. As a group, sell-side analysts expect that loanDepot, Inc. will post -0.23 EPS for the current year.

Insider Transactions at loanDepot

In related news, insider Jeff Alexander Walsh sold 37,514 shares of the stock in a transaction dated Tuesday, July 22nd. The stock was sold at an average price of $2.00, for a total transaction of $75,028.00. Following the completion of the transaction, the insider directly owned 4,103,237 shares in the company, valued at approximately $8,206,474. This trade represents a 0.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Anthony Li Hsieh sold 267,326 shares of the stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $2.01, for a total value of $537,325.26. Following the transaction, the chief executive officer owned 9,072,771 shares of the company's stock, valued at approximately $18,236,269.71. The trade was a 2.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 1,182,412 shares of company stock worth $2,381,655. 78.05% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of LDI. Millennium Management LLC lifted its position in shares of loanDepot by 167.1% in the fourth quarter. Millennium Management LLC now owns 650,987 shares of the company's stock valued at $1,328,000 after buying an additional 407,299 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of loanDepot by 7.5% in the fourth quarter. Geode Capital Management LLC now owns 775,097 shares of the company's stock valued at $1,582,000 after buying an additional 54,350 shares during the last quarter. Tidal Investments LLC acquired a new stake in loanDepot during the 4th quarter worth approximately $1,691,000. Marshall Wace LLP boosted its stake in loanDepot by 132.2% in the 4th quarter. Marshall Wace LLP now owns 465,297 shares of the company's stock valued at $949,000 after purchasing an additional 264,928 shares during the period. Finally, Two Sigma Investments LP boosted its stake in loanDepot by 345.6% in the 4th quarter. Two Sigma Investments LP now owns 131,098 shares of the company's stock valued at $267,000 after purchasing an additional 101,677 shares during the period. 39.39% of the stock is currently owned by institutional investors.

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.