loanDepot (NYSE:LDI) Trading Up 7.9% - Should You Buy?

Key Points

• loanDepot's shares rose 7.9% during trading, reaching a high of $1.76 before closing at $1.85, despite a significant decline in trading volume.
• UBS Group increased its price target for loanDepot from $1.25 to $1.40, maintaining a "neutral" rating on the stock.
• Insiders sold a total of 1,182,412 shares worth $2.38 million over the last quarter, indicating a decrease in their ownership, with 83.04% of the stock currently held by company insiders.

loanDepot, Inc. (NYSE:LDI - Get Free Report) was up 7.9% during trading on Tuesday . The company traded as high as $1.76 and last traded at $1.85. Approximately 81,530 shares were traded during trading, a decline of 93% from the average daily volume of 1,138,070 shares. The stock had previously closed at $1.71.

Analysts Set New Price Targets

A number of research analysts have recently commented on LDI shares. UBS Group increased their target price on loanDepot from $1.25 to $1.40 and gave the company a "neutral" rating in a research report on Wednesday, July 16th. Wall Street Zen lowered loanDepot from a "hold" rating to a "sell" rating in a report on Saturday.

loanDepot Price Performance

The company has a debt-to-equity ratio of 6.71, a current ratio of 1.18 and a quick ratio of 1.18. The stock has a market cap of $644.97 million, a price-to-earnings ratio of -5.92 and a beta of 3.35. The stock has a fifty day moving average of $1.58 and a 200 day moving average of $1.43.

Insider Activity at loanDepot

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

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Wilshire Advisors LLC grew its holdings in loanDepot by 39.8% in the first quarter. Wilshire Advisors LLC now owns 27,727 shares of the company's stock valued at $33,000 after purchasing an additional 7,899 shares during the last quarter. Cetera Investment Advisers grew 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 purchasing an additional 10,846 shares during the last quarter. LPL Financial LLC grew its holdings in loanDepot by 39.3% in the fourth quarter. LPL Financial LLC now owns 40,035 shares of the company's stock valued at $82,000 after purchasing an additional 11,286 shares during the last quarter. Aquatic Capital Management LLC acquired a new stake in loanDepot in the fourth quarter valued at $30,000. Finally, Capstone Financial Advisors Inc. grew its holdings in loanDepot by 60.0% in the first quarter. Capstone Financial Advisors Inc. now owns 40,000 shares of the company's stock valued at $48,000 after purchasing an additional 15,000 shares during the last quarter. 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.