loanDepot (NYSE:LDI) Stock Price Down 3.8% After 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)'s share price fell 3.8% during mid-day trading on Friday following insider selling activity. The company traded as low as $4.12 and last traded at $4.08. 5,047,199 shares changed hands during mid-day 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 2,043,712 shares of the firm's stock in a transaction dated Tuesday, September 9th. The stock was sold at an average price of $3.25, for a total transaction of $6,642,064.00. Following the sale, the chief executive officer directly owned 2,650,000 shares of the company's stock, valued at $8,612,500. This trade represents a 43.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Anthony Li Hsieh sold 3,046,005 shares of the firm's stock in a transaction that occurred on Friday, September 5th. The shares were sold at an average price of $2.64, for a total value of $8,041,453.20. Following the completion of the sale, the chief executive officer directly owned 4,693,712 shares in the company, valued at approximately $12,391,399.68. The trade was a 39.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. In other loanDepot news, CEO Anthony Li Hsieh sold 1,110,454 shares of the firm's stock in a transaction that occurred on Thursday, September 4th. The stock was sold at an average price of $2.17, for a total value of $2,409,685.18. Following the sale, the chief executive officer directly owned 7,739,717 shares of the company's stock, valued at approximately $16,795,185.89. This trade represents a 12.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. UBS Group raised their target price on loanDepot from $1.40 to $1.90 and gave the company a "neutral" rating in a research report on Wednesday, August 20th. BTIG Research restated a "neutral" rating on shares of loanDepot in a research report on Wednesday. Finally, Wall Street Zen downgraded loanDepot from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, loanDepot presently has a consensus rating of "Reduce" and a consensus target price of $2.30.

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 50 day moving average price of $1.98 and a two-hundred day moving average price of $1.53. The firm has a market capitalization of $1.34 billion, a price-to-earnings ratio of -12.40 and a beta of 3.38.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Alpine Global Management LLC acquired a new position in loanDepot during the 4th quarter worth $33,000. Wilshire Advisors LLC grew its stake in loanDepot by 39.8% during the 1st quarter. Wilshire Advisors LLC now owns 27,727 shares of the company's stock worth $33,000 after purchasing an additional 7,899 shares in the last quarter. Invesco Ltd. acquired a new position in loanDepot during the 1st quarter worth $44,000. Los Angeles Capital Management LLC acquired a new position in loanDepot during the 2nd quarter worth $46,000. Finally, Vanguard Personalized Indexing Management LLC grew its stake in loanDepot by 130.3% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 37,272 shares of the company's stock worth $47,000 after purchasing an additional 21,091 shares in the last quarter. 39.39% of the stock is owned by institutional investors and hedge funds.

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.

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