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

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) shares 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 changing hands.

Wall Street Analysts Forecast Growth

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

loanDepot Price Performance

The company has a debt-to-equity ratio of 6.48, a quick ratio of 1.18 and a current ratio of 1.18. The stock has a market capitalization of $566.46 million, a P/E ratio of -3.81 and a beta of 3.33. The firm has a 50-day moving average price of $1.45 and a 200 day moving average price of $1.43.

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

Insider Buying and Selling

In other news, insider Jeff Alexander Walsh sold 70,000 shares of the firm's stock in a transaction that occurred on Monday, July 21st. The stock was sold at an average price of $2.01, for a total value of $140,700.00. Following the completion of the transaction, the insider owned 4,140,751 shares in the company, valued at $8,322,909.51. This trade represents a 1.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Anthony Li Hsieh sold 672,865 shares of the firm's stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $2.02, for a total value of $1,359,187.30. Following the completion of the transaction, the chief executive officer owned 9,461,694 shares of the company's stock, valued at approximately $19,112,621.88. The trade was a 6.64% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 1,182,412 shares of company stock valued at $2,381,655. 78.05% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Millennium Management LLC increased its position in loanDepot by 167.1% during the 4th 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 in the last quarter. Geode Capital Management LLC increased its position in loanDepot by 7.5% during the 4th 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 in the last quarter. Tidal Investments LLC bought a new position in loanDepot during the 4th quarter valued at approximately $1,691,000. Marshall Wace LLP increased its position in loanDepot by 132.2% during the 4th quarter. Marshall Wace LLP now owns 465,297 shares of the company's stock valued at $949,000 after buying an additional 264,928 shares in the last quarter. Finally, Two Sigma Investments LP increased its position in loanDepot by 345.6% during the 4th quarter. Two Sigma Investments LP now owns 131,098 shares of the company's stock valued at $267,000 after buying an additional 101,677 shares in the last quarter. 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.