loanDepot (NYSE:LDI) Shares Gap Down on Disappointing Earnings

Shares of loanDepot, Inc. (NYSE:LDI) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $1.88, but opened at $1.76. loanDepot shares last traded at $1.6750, with a volume of 1,604,337 shares.

The company reported ($0.10) EPS for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.06). loanDepot had a negative net margin of 6.46% and a negative return on equity of 22.40%. The business had revenue of $316.27 million during the quarter, compared to analysts’ expectations of $333.29 million.

Wall Street Analyst Weigh In

LDI has been the subject of several recent analyst reports. Bank of America set a $1.75 price objective on shares of loanDepot in a research report on Monday, December 1st. Weiss Ratings reissued a “sell (d-)” rating on shares of loanDepot in a research report on Thursday, January 22nd. Finally, The Goldman Sachs Group set a $2.40 price objective on shares of loanDepot in a research note on Tuesday, January 6th. Two equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and a consensus price target of $2.38.

Insider Activity at loanDepot

In related news, CEO Anthony Li Hsieh sold 884,495 shares of the company’s stock in a transaction on Thursday, January 15th. The shares were sold at an average price of $2.70, for a total value of $2,388,136.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last 90 days, insiders have sold 2,600,000 shares of company stock valued at $6,561,770. Insiders own 83.04% of the company’s stock.

Institutional Investors Weigh In On loanDepot

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Millennium Management LLC boosted its stake in shares of loanDepot by 622.6% during the third quarter. Millennium Management LLC now owns 5,620,553 shares of the company’s stock worth $17,255,000 after buying an additional 4,842,751 shares during the period. Vanguard Group Inc. increased its position in loanDepot by 5.3% in the 3rd quarter. Vanguard Group Inc. now owns 4,528,264 shares of the company’s stock valued at $13,902,000 after acquiring an additional 226,347 shares during the period. Charles Schwab Investment Management Inc. raised its stake in loanDepot by 22.2% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,596,426 shares of the company’s stock valued at $5,375,000 after acquiring an additional 472,159 shares during the last quarter. Geode Capital Management LLC raised its stake in loanDepot by 7.3% during the 4th quarter. Geode Capital Management LLC now owns 2,194,199 shares of the company’s stock valued at $4,543,000 after acquiring an additional 148,644 shares during the last quarter. Finally, UBS Group AG raised its stake in loanDepot by 1,125.1% during the 3rd quarter. UBS Group AG now owns 2,020,027 shares of the company’s stock valued at $6,201,000 after acquiring an additional 1,855,136 shares during the last quarter. 39.39% of the stock is owned by hedge funds and other institutional investors.

loanDepot Stock Down 9.3%

The business has a 50-day simple moving average of $2.25 and a two-hundred day simple moving average of $2.66. The company has a market capitalization of $568.17 million, a price-to-earnings ratio of -4.75, a PEG ratio of 0.43 and a beta of 3.47. The company has a debt-to-equity ratio of 6.94, a quick ratio of 1.19 and a current ratio of 1.19.

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.