loanDepot (NYSE:LDI) Stock Price Down 7.2% - Here's Why

Key Points

• loanDepot's stock price fell 7.2% during mid-day trading, reaching a low of $2.00 and now trading at $1.99.
• Research firms have given mixed ratings on loanDepot, with UBS raising the target price to $1.90, while Wall Street Zen downgraded the stock from "hold" to "sell."
• Insider trading activity includes the sale of over 1.2 million shares by CEO Anthony Li Hsieh, indicating a decrease in insider ownership of 9.26%.

loanDepot, Inc. (NYSE:LDI - Get Free Report) fell 7.2% during mid-day trading on Tuesday . The stock traded as low as $2.00 and last traded at $1.99. 1,058,671 shares changed hands during mid-day trading, a decline of 16% from the average session volume of 1,259,057 shares. The stock had previously closed at $2.14.

Wall Street Analyst Weigh In

Several research firms have issued reports on LDI. UBS Group increased their target price on shares of loanDepot from $1.40 to $1.90 and gave the stock a "neutral" rating in a research note on Wednesday, August 20th. Wall Street Zen lowered shares of loanDepot from a "hold" rating to a "sell" rating in a report on Saturday, August 16th. Finally, BTIG Research initiated coverage on shares of loanDepot in a report on Monday, August 18th. They issued a "neutral" rating on the stock. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Reduce" and an average price target of $2.30.

loanDepot Stock Performance

The company has a market capitalization of $656.90 million, a PE ratio of -6.01 and a beta of 3.37. The business's 50-day moving average is $1.71 and its 200-day moving average is $1.46. The company has a debt-to-equity ratio of 6.71, a quick ratio of 1.18 and a current ratio of 1.18.

Insider Transactions at loanDepot

In other loanDepot news, insider Jeff Alexander Walsh sold 70,000 shares of the firm's stock in a transaction dated 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 approximately $8,322,909.51. This trade represents a 1.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Anthony Li Hsieh sold 1,184,108 shares of the firm's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $2.04, for a total transaction of $2,415,580.32. Following the sale, the chief executive officer owned 11,598,114 shares of the company's stock, valued at approximately $23,660,152.56. This represents a 9.26% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 4,457,831 shares of company stock valued at $9,073,266. 83.04% of the stock is currently owned by corporate insiders.

Institutional Trading of loanDepot

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Aquatic Capital Management LLC bought a new stake in shares of loanDepot in the fourth quarter worth approximately $30,000. Alpine Global Management LLC bought a new stake in shares of loanDepot in the fourth quarter worth approximately $33,000. Wilshire Advisors LLC grew its stake in shares of loanDepot by 39.8% in the first quarter. Wilshire Advisors LLC now owns 27,727 shares of the company's stock worth $33,000 after acquiring an additional 7,899 shares during the period. Boothbay Fund Management LLC bought a new stake in shares of loanDepot in the fourth quarter worth approximately $41,000. Finally, Invesco Ltd. bought a new stake in shares of loanDepot in the first quarter worth approximately $44,000. 39.39% of the stock is currently owned by 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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