loanDepot (NYSE:LDI) Shares Gap Up - Time to Buy?

Key Points

• loanDepot's stock price increased from $3.46 to $3.66 upon opening, ultimately trading at $3.73 with a significant trading volume of 3,405,443 shares.
• UBS Group raised their price target for loanDepot from $1.90 to $3.00, while Weiss Ratings maintained a "sell" rating, indicating mixed analyst opinions on the stock.
• Insider transactions reveal substantial selling activity, with CEO Anthony Li Hsieh selling 1.3 million shares for approximately $3.73 million, which may signal caution to investors.

loanDepot, Inc. (NYSE:LDI - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $3.46, but opened at $3.66. loanDepot shares last traded at $3.73, with a volume of 3,405,443 shares trading hands.

Analyst Ratings Changes

A number of research firms have commented on LDI. UBS Group increased their price objective on shares of loanDepot from $1.90 to $3.00 and gave the company a "neutral" rating in a research note on Friday, October 10th. Weiss Ratings reiterated a "sell (d-)" rating on shares of loanDepot in a research note on Wednesday, October 8th. BTIG Research reiterated a "neutral" rating on shares of loanDepot in a research note on Wednesday, September 10th. Finally, Wall Street Zen upgraded shares of loanDepot from a "sell" rating to a "hold" rating in a research note on Saturday, October 11th. Two investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Reduce" and a consensus price target of $2.85.

loanDepot Stock Performance

The stock's 50-day moving average price is $2.97 and its 200-day moving average price is $1.93. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 6.71. The company has a market capitalization of $1.19 billion, a P/E ratio of -10.83 and a beta of 3.45.

Insider Transactions at loanDepot

In related news, CEO Anthony Li Hsieh sold 1,300,000 shares of the stock in a transaction dated Tuesday, October 14th. The shares were sold at an average price of $2.87, for a total value of $3,731,000.00. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CAO Darren Graeler sold 100,000 shares of the stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $4.30, for a total transaction of $430,000.00. Following the completion of the sale, the chief accounting officer directly owned 219,871 shares in the company, valued at approximately $945,445.30. This trade represents a 31.26% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 14,587,748 shares of company stock worth $41,685,046. Corporate insiders own 78.05% of the company's stock.

Institutional Trading of loanDepot

Large investors have recently modified their holdings of the company. Goldman Sachs Group Inc. increased its holdings in shares of loanDepot by 30.3% in 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. Charles Schwab Investment Management Inc. increased its holdings in shares of loanDepot by 1,671.4% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 655,137 shares of the company's stock worth $780,000 after acquiring an additional 618,153 shares during the period. Philosophy Capital Management LLC increased its holdings in shares of loanDepot by 73.3% in the 1st quarter. Philosophy Capital Management LLC now owns 4,141,164 shares of the company's stock worth $4,928,000 after acquiring an additional 1,751,245 shares during the period. Philadelphia Financial Management of San Francisco LLC acquired a new position in loanDepot during the 1st quarter valued at about $1,469,000. Finally, Wilshire Advisors LLC increased its stake in loanDepot by 39.8% during the 1st quarter. Wilshire Advisors LLC now owns 27,727 shares of the company's stock valued at $33,000 after buying an additional 7,899 shares during the period. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.