loanDepot (NYSE:LDI) Shares Gap Down – Should You Sell?

loanDepot, Inc. (NYSE:LDI) gapped down prior to trading on Thursday . The stock had previously closed at $2.92, but opened at $2.80. loanDepot shares last traded at $2.7450, with a volume of 461,939 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on LDI. UBS Group lifted their target price on loanDepot from $1.90 to $3.00 and gave the stock a “neutral” rating in a research report on Friday, October 10th. Weiss Ratings restated a “sell (d-)” rating on shares of loanDepot in a research report on Wednesday, October 8th. BTIG Research restated a “neutral” rating on shares of loanDepot in a research report on Wednesday, September 10th. Wall Street Zen upgraded shares of loanDepot from a “sell” rating to a “hold” rating in a report on Sunday. Finally, The Goldman Sachs Group boosted their price objective on shares of loanDepot from $1.45 to $3.00 and gave the stock a “sell” rating in a report on Wednesday, October 29th. Two equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, loanDepot has a consensus rating of “Reduce” and an average price target of $3.00.

loanDepot Stock Performance

The company has a debt-to-equity ratio of 6.94, a quick ratio of 1.18 and a current ratio of 1.19. The firm has a market capitalization of $891.86 million, a PE ratio of -7.54 and a beta of 3.45. The company’s fifty day moving average price is $3.26 and its two-hundred day moving average price is $2.12.

loanDepot (NYSE:LDI) last issued its earnings results on Thursday, November 6th. The company reported ($0.02) EPS for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.02. loanDepot had a negative net margin of 6.46% and a negative return on equity of 22.40%. The business had revenue of $325.16 million for the quarter, compared to the consensus estimate of $309.20 million. As a group, equities analysts expect that loanDepot, Inc. will post -0.23 earnings per share for the current year.

Insider Transactions at loanDepot

In related news, CAO Darren Graeler sold 100,000 shares of the firm’s stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $4.30, for a total transaction of $430,000.00. Following the sale, the chief accounting officer directly owned 219,871 shares in the company, valued at approximately $945,445.30. This trade represents a 31.26% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Anthony Li Hsieh sold 1,300,000 shares of the company’s stock in a transaction that occurred on Tuesday, October 14th. The stock was sold at an average price of $2.87, for a total value of $3,731,000.00. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 14,587,748 shares of company stock valued at $41,685,046. Insiders own 78.05% of the company’s stock.

Hedge Funds Weigh In On loanDepot

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Wilshire Advisors LLC grew its holdings in loanDepot by 39.8% during the 1st quarter. Wilshire Advisors LLC now owns 27,727 shares of the company’s stock worth $33,000 after acquiring an additional 7,899 shares in the last quarter. Jones Financial Companies Lllp grew its stake in loanDepot by 8,934.0% in the third quarter. Jones Financial Companies Lllp now owns 9,034 shares of the company’s stock worth $28,000 after purchasing an additional 8,934 shares in the last quarter. Traynor Capital Management Inc. acquired a new stake in loanDepot during the third quarter valued at approximately $31,000. CWM LLC bought a new position in loanDepot during the 3rd quarter worth approximately $32,000. Finally, Wealth Enhancement Advisory Services LLC bought a new stake in shares of loanDepot in the 3rd quarter valued at approximately $31,000. 39.39% of the stock is owned by hedge funds and other 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.