loanDepot (NYSE:LDI) Shares Down 3.8% Following Insider Selling

Key Points

• loanDepot's stock price fell 3.8% after CEO Anthony Li Hsieh sold over 2 million shares, marking a substantial decrease in his ownership.
• Analysts are cautious, with several maintaining a "neutral" rating on loanDepot, while one downgraded it from "hold" to "sell," indicating mixed sentiments about the stock's performance.
• Approximately 39.39% of loanDepot's shares are owned by institutional investors and hedge funds, reflecting significant institutional interest in the company.

loanDepot, Inc. (NYSE:LDI - Get Free Report) shares fell 3.8% during mid-day trading on Friday following insider selling activity. The stock traded as low as $4.12 and last traded at $4.08. 5,047,199 shares traded hands during trading, an increase of 132% from the average session volume of 2,172,840 shares. The stock had previously closed at $4.24.

Specifically, CEO Anthony Li Hsieh sold 1,300,000 shares of the business's stock in a transaction that occurred on Friday, September 12th. The stock was sold at an average price of $4.10, for a total value of $5,330,000.00. Following the completion of the sale, the chief executive officer owned 1,350,000 shares of the company's stock, valued at approximately $5,535,000. The trade was a 49.06% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO Darren Graeler sold 100,000 shares of the business's stock in a transaction that occurred on Thursday, September 11th. The shares were sold at an average price of $4.30, for a total value of $430,000.00. Following the completion of the sale, the chief accounting officer directly owned 219,871 shares of the company's stock, valued at approximately $945,445.30. The trade was a 31.26% decrease in their position. The disclosure for this sale can be found here. In related news, CEO Anthony Li Hsieh sold 2,043,712 shares of the business's stock in a transaction that occurred on Tuesday, September 9th. The stock was sold at an average price of $3.25, for a total value of $6,642,064.00. Following the completion of the sale, the chief executive officer directly owned 2,650,000 shares in the company, valued at approximately $8,612,500. The trade was a 43.54% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.

Analyst Ratings Changes

A number of analysts have recently issued reports on the company. UBS Group upped their target price on loanDepot from $1.40 to $1.90 and gave the company a "neutral" rating in a research note on Wednesday, August 20th. BTIG Research restated a "neutral" rating on shares of loanDepot in a research note on Wednesday, September 10th. Finally, Wall Street Zen lowered loanDepot from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Reduce" and a consensus target price of $2.30.

loanDepot Stock Performance

The stock has a 50-day moving average of $2.17 and a 200-day moving average of $1.59. The firm has a market cap of $1.55 billion, a price-to-earnings ratio of -14.56 and a beta of 3.38. The company has a debt-to-equity ratio of 6.71, a quick ratio of 1.18 and a current ratio of 1.18.

Institutional Investors Weigh In On loanDepot

A number of hedge funds and other institutional investors have recently bought and sold shares of LDI. Northern Trust Corp grew its stake in loanDepot by 11.4% in the fourth quarter. Northern Trust Corp now owns 157,130 shares of the company's stock valued at $321,000 after purchasing an additional 16,033 shares in the last quarter. Cetera Investment Advisers lifted its holdings in loanDepot by 11.8% during the 4th quarter. Cetera Investment Advisers now owns 103,148 shares of the company's stock worth $210,000 after purchasing an additional 10,846 shares during the last quarter. D. E. Shaw & Co. Inc. lifted its holdings in loanDepot by 184.1% during the 4th quarter. D. E. Shaw & Co. Inc. now owns 170,441 shares of the company's stock worth $348,000 after purchasing an additional 110,448 shares during the last quarter. Millennium Management LLC lifted its holdings in loanDepot by 167.1% during the 4th quarter. Millennium Management LLC now owns 650,987 shares of the company's stock worth $1,328,000 after purchasing an additional 407,299 shares during the last quarter. Finally, OMERS ADMINISTRATION Corp acquired a new stake in loanDepot during the 4th quarter worth approximately $348,000. Institutional investors and hedge funds own 39.39% of the company's stock.

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.