loanDepot (NYSE:LDI) Stock Price Down 8.3% - Here's Why

Key Points

• loanDepot's stock fell by 8.3% during mid-day trading, reaching a low of $1.60, with a total of approximately 1.18 million shares changing hands.
• UBS Group set a new price target of $1.40 for loanDepot and assigned a "neutral" rating, indicating cautious sentiment toward the stock.
• In recent insider trading activities, CEO Anthony Li Hsieh sold 672,865 shares at an average price of $2.02, reducing his ownership stake by 6.64%.

loanDepot, Inc. (NYSE:LDI - Get Free Report) shares were down 8.3% on Wednesday . The stock traded as low as $1.60 and last traded at $1.60. Approximately 1,181,819 shares were traded during trading, an increase of 6% from the average daily volume of 1,113,587 shares. The stock had previously closed at $1.74.

Wall Street Analyst Weigh In

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

loanDepot Price Performance

The company has a debt-to-equity ratio of 6.48, a current ratio of 1.18 and a quick ratio of 1.18. The business's 50 day moving average price is $1.46 and its 200 day moving average price is $1.42. The stock has a market capitalization of $552.60 million, a P/E ratio of -3.72 and a beta of 3.35.

loanDepot (NYSE:LDI - Get Free Report) last issued its earnings results on Tuesday, May 6th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.08). The company had revenue of $273.62 million during the quarter, compared to analysts' expectations of $275.11 million. loanDepot had a negative return on equity of 18.41% and a negative net margin of 7.74%. Sell-side analysts forecast that loanDepot, Inc. will post -0.23 EPS for the current year.

Insider Buying and Selling at loanDepot

In other loanDepot news, insider Jeff Alexander Walsh sold 37,514 shares of the stock in a transaction dated Tuesday, July 22nd. The stock was 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 approximately $8,206,474. This represents a 0.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Anthony Li Hsieh sold 267,326 shares of the business's stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $2.01, for a total value of $537,325.26. Following the sale, the chief executive officer owned 9,072,771 shares of the company's stock, valued at approximately $18,236,269.71. This represents a 2.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,182,412 shares of company stock valued at $2,381,655 in the last ninety days. 78.05% of the stock is currently owned by corporate insiders.

Institutional Trading of loanDepot

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LDI. Wilshire Advisors LLC raised its position in shares of loanDepot by 39.8% during 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 period. Cetera Investment Advisers increased its stake in loanDepot by 11.8% in the 4th quarter. Cetera Investment Advisers now owns 103,148 shares of the company's stock worth $210,000 after buying an additional 10,846 shares in the last quarter. LPL Financial LLC increased its stake in loanDepot by 39.3% in the 4th quarter. LPL Financial LLC now owns 40,035 shares of the company's stock worth $82,000 after buying an additional 11,286 shares in the last quarter. American Century Companies Inc. raised its holdings in loanDepot by 12.8% during the fourth quarter. American Century Companies Inc. now owns 120,232 shares of the company's stock valued at $245,000 after acquiring an additional 13,628 shares during the period. Finally, Aquatic Capital Management LLC purchased a new position in shares of loanDepot in the fourth quarter valued at about $30,000. 39.39% of the stock is owned by hedge funds and other institutional investors.

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.