loanDepot Sees Unusually High Options Volume (NYSE:LDI)

Key Points

• loanDepot, Inc. experienced a significant increase in options trading, with 20,699 call options purchased—an 82% rise compared to average daily volume.
• Despite this trading activity, loanDepot's shares fell by 8.7% to $3.40, with a market cap of $1.12 billion and a P/E ratio of -10.26.
• Insider selling was notable, with CEO Anthony Li Hsieh selling 1.35 million shares for about $6.22 million, reflecting ongoing trends in company stock investment by insiders.

loanDepot, Inc. (NYSE:LDI - Get Free Report) saw unusually large options trading activity on Monday. Traders purchased 20,699 call options on the stock. This represents an increase of approximately 82% compared to the average volume of 11,345 call options.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on LDI shares. UBS Group upped their target price on shares of loanDepot from $1.40 to $1.90 and gave the company a "neutral" rating in a research note on Wednesday, August 20th. BTIG Research reissued a "neutral" rating on shares of loanDepot in a research note on Wednesday, September 10th. Finally, Wall Street Zen cut shares of loanDepot from a "hold" rating to a "sell" rating in a research note 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 company. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and an average price target of $2.30.

Insider Activity

In other news, CEO Anthony Li Hsieh sold 3,046,005 shares of the business's stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $2.64, for a total transaction of $8,041,453.20. Following the transaction, the chief executive officer owned 4,693,712 shares in the company, valued at approximately $12,391,399.68. The trade was a 39.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In the last quarter, insiders have sold 14,470,160 shares of company stock worth $40,335,701. Insiders own 83.04% of the company's stock.

Institutional Trading of loanDepot

Several large investors have recently added to or reduced their stakes in the company. Continental Advisors LLC bought a new stake in loanDepot during the second quarter worth about $656,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in shares of loanDepot during the second quarter worth approximately $57,000. Cerity Partners LLC acquired a new position in shares of loanDepot during the second quarter worth approximately $116,000. Invesco Ltd. lifted its position in shares of loanDepot by 204.1% during the second quarter. Invesco Ltd. now owns 111,245 shares of the company's stock worth $141,000 after purchasing an additional 74,669 shares in the last quarter. Finally, New York State Common Retirement Fund acquired a new position in shares of loanDepot during the second quarter worth approximately $98,000. 39.39% of the stock is owned by institutional investors.

loanDepot Price Performance

loanDepot stock traded down $0.24 during trading hours on Monday, hitting $3.49. 14,476,086 shares of the stock were exchanged, compared to its average volume of 16,915,694. The company has a debt-to-equity ratio of 6.71, a quick ratio of 1.18 and a current ratio of 1.18. The stock has a market capitalization of $1.15 billion, a P/E ratio of -10.56 and a beta of 3.37. loanDepot has a 12 month low of $1.01 and a 12 month high of $5.05. The business's 50-day moving average is $2.36 and its two-hundred day moving average is $1.65.

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.