loanDepot (NYSE:LDI) Shares Up 6.1% - Still a Buy?

Key Points

• Shares rose 6.1% to $1.645 on Tuesday on below-average volume (761,279 shares), trading near its 50-day SMA ($1.65) but well under the 200-day SMA ($2.28).
• Analysts are largely negative with a consensus rating of "Strong Sell" and a $2.38 consensus price target, following downgrades from firms including Zacks and Weiss (Goldman Sachs is an outlier with a $2.40 target).
• Fundamentals remain weak: loanDepot reported a quarterly EPS miss, has a negative net margin and ROE, a negative PE ratio, high leverage (debt-to-equity 8.22), and a market cap of about $558 million.

loanDepot, Inc. (NYSE:LDI - Get Free Report) shares traded up 6.1% on Tuesday . The company traded as high as $1.64 and last traded at $1.6450. 761,279 shares were traded during mid-day trading, a decline of 75% from the average session volume of 3,050,648 shares. The stock had previously closed at $1.55.

Analyst Upgrades and Downgrades

LDI has been the topic of several research analyst reports. Zacks Research lowered loanDepot from a "hold" rating to a "strong sell" rating in a report on Wednesday, March 18th. The Goldman Sachs Group set a $2.40 price target on loanDepot in a report on Tuesday, January 6th. BTIG Research reissued a "neutral" rating on shares of loanDepot in a report on Wednesday, March 11th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of loanDepot in a research report on Tuesday, April 21st. Two equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Strong Sell" and a consensus price target of $2.38.

loanDepot Price Performance

The company has a market cap of $557.82 million, a PE ratio of -5.74 and a beta of 3.55. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 8.22. The stock has a 50-day simple moving average of $1.65 and a 200 day simple moving average of $2.28.

loanDepot (NYSE:LDI - Get Free Report) last issued its quarterly earnings data on Tuesday, March 10th. The company reported ($0.10) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.06). The company had revenue of $316.27 million during the quarter, compared to analysts' expectations of $333.29 million. loanDepot had a negative net margin of 5.27% and a negative return on equity of 18.29%.

Hedge Funds Weigh In On loanDepot

A number of hedge funds have recently made changes to their positions in LDI. SG Americas Securities LLC purchased a new stake in loanDepot in the fourth quarter valued at approximately $26,000. Jones Financial Companies Lllp raised its holdings in shares of loanDepot by 8,934.0% in the 3rd quarter. Jones Financial Companies Lllp now owns 9,034 shares of the company's stock valued at $28,000 after buying an additional 8,934 shares during the period. Wealth Enhancement Advisory Services LLC acquired a new position in loanDepot during the 3rd quarter worth about $31,000. Traynor Capital Management Inc. purchased a new position in loanDepot during the 3rd quarter valued at about $31,000. Finally, CWM LLC purchased a new position in loanDepot during the 3rd quarter valued at about $32,000. Hedge funds and other institutional investors own 39.39% of the company's stock.

About loanDepot

loanDepot, Inc NYSE: LDI is a leading non-bank consumer lender that provides a broad range of home and personal financing products through a digitally enabled platform. The company specializes in originating and servicing purchase and refinance mortgage loans, home equity lines of credit (HELOCs), and personal loans. Through its proprietary mello™ technology suite, loanDepot streamlines the application, underwriting, and closing processes for borrowers and real estate professionals, emphasizing speed, transparency, and a seamless digital experience.

Founded in 2010 by Anthony Hsieh, loanDepot has grown rapidly to become one of the largest independent mortgage lenders in the United States.

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