loanDepot (NYSE:LDI) Stock Price Up 9.6% - Still a Buy?

Key Points

• Shares jumped 9.6% to $1.786 intraday on Friday, but the rally occurred on light volume (~483,820 shares, down ~85% from the daily average), indicating limited conviction behind the move.
• Analysts assign loanDepot a consensus "Strong Sell" rating (two Holds, three Sells) with an average price target of $2.38.
• The company missed quarterly estimates, reporting EPS of ($0.10) vs. ($0.04) expected and revenue of $316.3M vs. $333.3M, and it exhibits a negative net margin/ROE and a high debt-to-equity ratio (8.22).

loanDepot, Inc. (NYSE:LDI - Get Free Report) rose 9.6% during mid-day trading on Friday . The stock traded as high as $1.81 and last traded at $1.7860. Approximately 483,820 shares were traded during trading, a decline of 85% from the average daily volume of 3,175,685 shares. The stock had previously closed at $1.63.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on LDI. BTIG Research reissued a "neutral" rating on shares of loanDepot in a research report on Wednesday, March 11th. Weiss Ratings restated a "sell (d-)" rating on shares of loanDepot in a report on Thursday, January 22nd. Zacks Research cut shares of loanDepot from a "hold" rating to a "strong sell" rating in a research report on Wednesday, March 18th. Finally, The Goldman Sachs Group set a $2.40 target price on loanDepot in a report on Tuesday, January 6th. Two analysts have rated the stock with a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, loanDepot currently has a consensus rating of "Strong Sell" and an average target price of $2.38.

loanDepot Price Performance

The stock has a market capitalization of $611.43 million, a PE ratio of -6.29 and a beta of 3.55. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 8.22. The stock's 50-day moving average is $1.71 and its 200 day moving average is $2.35.

loanDepot (NYSE:LDI - Get Free Report) last issued its earnings results on Tuesday, March 10th. The company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.06). loanDepot had a negative net margin of 5.27% and a negative return on equity of 18.29%. The company had revenue of $316.27 million for the quarter, compared to analyst estimates of $333.29 million. As a group, equities analysts predict that loanDepot, Inc. will post -0.23 earnings per share for the current year.

Institutional Investors Weigh In On loanDepot

Large investors have recently made changes to their positions in the company. Jones Financial Companies Lllp raised its position in loanDepot by 8,934.0% during the third quarter. Jones Financial Companies Lllp now owns 9,034 shares of the company's stock valued at $28,000 after acquiring an additional 8,934 shares in the last quarter. Traynor Capital Management Inc. acquired a new position in shares of loanDepot during the 3rd quarter worth $31,000. CWM LLC acquired a new position in shares of loanDepot during the 3rd quarter worth $32,000. Wealth Enhancement Advisory Services LLC bought a new position in shares of loanDepot during the 3rd quarter valued at $31,000. Finally, Russell Investments Group Ltd. bought a new position in shares of loanDepot during the 3rd quarter valued at $35,000. Institutional investors own 39.39% of the company's stock.

About loanDepot

loanDepot, Inc NYSE: LDI is a leading non-bank consumer lender that provides a broad range of home and personal financing products through a digitally enabled platform. The company specializes in originating and servicing purchase and refinance mortgage loans, home equity lines of credit (HELOCs), and personal loans. Through its proprietary mello™ technology suite, loanDepot streamlines the application, underwriting, and closing processes for borrowers and real estate professionals, emphasizing speed, transparency, and a seamless digital experience.

Founded in 2010 by Anthony Hsieh, loanDepot has grown rapidly to become one of the largest independent mortgage lenders in the United States.

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