loanDepot (NYSE:LDI) Shares 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.

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

Analysts Set New Price Targets

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

loanDepot Stock Up 12.6%

The stock has a market capitalization of $635.08 million, a price-to-earnings ratio of -5.83 and a beta of 3.35. The business's 50-day moving average is $1.52 and its two-hundred day moving average is $1.42. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 6.48.

Insider Activity

In other news, CEO Anthony Li Hsieh sold 672,865 shares of the business'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 sale, the chief executive officer directly 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Jeff Alexander Walsh sold 70,000 shares of the business's stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $2.01, for a total transaction of $140,700.00. Following the completion of the sale, the insider directly owned 4,140,751 shares in the company, valued at $8,322,909.51. This trade represents a 1.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,182,412 shares of company stock worth $2,381,655 over the last quarter. 83.04% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On loanDepot

A number of institutional investors and hedge funds have recently made changes to their positions in LDI. Aquatic Capital Management LLC purchased a new stake in shares of loanDepot in the 4th quarter valued at approximately $30,000. Alpine Global Management LLC purchased a new stake in shares of loanDepot in the 4th quarter valued at approximately $33,000. Wilshire Advisors LLC increased its position in shares of loanDepot by 39.8% in the 1st 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. Boothbay Fund Management LLC purchased a new stake in shares of loanDepot in the 4th quarter valued at approximately $41,000. Finally, Invesco Ltd. purchased a new position in shares of loanDepot in the 1st quarter valued at $44,000. 39.39% of the stock is owned by hedge funds and other institutional investors.

loanDepot Company Profile

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.

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