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 traded.

The company reported ($0.10) EPS for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.06). The firm had revenue of $316.27 million for the quarter, compared to analyst estimates of $333.29 million. loanDepot had a negative return on equity of 17.66% and a negative net margin of 5.27%.

Key Headlines Impacting loanDepot

Here are the key news stories impacting loanDepot this week:

• Positive Sentiment: Q4 loss narrowed versus prior year — loanDepot reported a GAAP loss of $0.10 per share, improved from a $0.23 loss a year earlier, indicating operating progress year-over-year. Read More.
• Neutral Sentiment: Company hosted a formal earnings release, slide deck and conference call with management — transcripts and the slide deck are available for investors who want management commentary and forward-looking context. Read More. • Read More. • Read More.
• Neutral Sentiment: Multiple transcripts and writeups posted — full call transcripts are available from Yahoo Finance and Seeking Alpha for detail on management’s strategic remarks and any guidance or cost initiatives discussed. Read More. • Read More.
• Negative Sentiment: Missed EPS and revenue — Q4 EPS was ($0.10) vs. consensus of ($0.04), and revenue was $316.3M vs. consensus ~$333.3M; earnings and top-line misses are the immediate catalyst weighing on the stock. Read More.
• Negative Sentiment: Profitability and balance-sheet metrics remain a concern — negative net margin, negative ROE and a high debt-to-equity ratio continue to pressure investor sentiment and valuation multiples. Read More.

Analyst Ratings Changes

A number of research analysts have weighed in on LDI shares. Bank of America set a $1.75 price objective on shares of loanDepot in a report on Monday, December 1st. BTIG Research restated a “neutral” rating on shares of loanDepot in a research report on Wednesday. The Goldman Sachs Group set a $2.40 price target on loanDepot in a research note on Tuesday, January 6th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of loanDepot in a report on Thursday, January 22nd. Two investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Reduce” and a consensus target price of $2.38.

Insiders Place Their Bets

In other loanDepot 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 transaction of $2,388,136.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders have sold 2,600,000 shares of company stock worth $6,561,770 in the last ninety days. Corporate insiders own 78.05% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Millennium Management LLC increased its stake in loanDepot by 622.6% during the 3rd 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 in the last quarter. Vanguard Group Inc. raised its stake 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 purchasing an additional 226,347 shares during the last quarter. Charles Schwab Investment Management Inc. raised its stake in loanDepot by 22.2% in 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 purchasing an additional 472,159 shares during the last quarter. Geode Capital Management LLC lifted its holdings in loanDepot by 7.3% in the 4th quarter. Geode Capital Management LLC now owns 2,194,199 shares of the company’s stock valued at $4,543,000 after purchasing an additional 148,644 shares in the last quarter. Finally, UBS Group AG lifted its holdings in loanDepot by 1,125.1% in the 3rd quarter. UBS Group AG now owns 2,020,027 shares of the company’s stock valued at $6,201,000 after purchasing an additional 1,855,136 shares in the last quarter. 39.39% of the stock is owned by hedge funds and other institutional investors.

loanDepot Stock Performance

The company has a market cap of $588.16 million, a price-to-earnings ratio of -6.09, a PEG ratio of 0.44 and a beta of 3.47. The firm’s 50 day simple moving average is $2.24 and its 200-day simple moving average is $2.65. The company has a debt-to-equity ratio of 6.94, a quick ratio of 1.19 and a current ratio of 1.19.

loanDepot Company Profile

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.