IRVINE, CA—Anthony Hsieh, a director and significant shareholder of loanDepot, Inc. (NYSE:LDI), has recently sold shares of the company's Class A Common Stock in transactions totaling approximately $1.2 million. According to a recent SEC filing, the sales occurred over two days, November 20 and 21, with share prices ranging from $2.274 to $2.348.
The first transaction involved the sale of 240,150 shares at a weighted average price of $2.274, while the second transaction saw the sale of 279,692 shares at a weighted average price of $2.348. Following these transactions, Hsieh holds 6,325,758 shares indirectly through the JLSSAA Trust, where he maintains voting and investment power.
These transactions reflect Hsieh's continued involvement and strategic decisions regarding his holdings in loanDepot, a company known for its financial services offerings.
In other recent news, loanDepot has reported a noteworthy return to profitability in the third quarter of 2024, recording an adjusted net income of $7 million. This significant recovery follows a $29 million loss in the same period the previous year. The company also noted a 19% increase in pull-through weighted rate lock volume to $6.7 billion and a surge in adjusted total revenue to $320 million, up from $261 million year-over-year.
CEO Frank Martell has introduced Project North Star, a strategic initiative aimed at driving revenue growth and enhancing customer experiences. Furthermore, CFO David Hayes has projected a Q4 2024 pull-through weighted lock volume between $5.5 billion and $7.5 billion. These recent developments indicate a positive shift in loanDepot's financial health and strategic direction.
Despite the return to profitability, loanDepot did face increased expenses due to higher commissions, marketing, and overtime costs. However, the company ended Q3 with $483 million in cash, suggesting preparedness for market opportunities as the housing market shows signs of recovery.
InvestingPro Insights
The recent share sales by Anthony Hsieh come at a time when loanDepot (NYSE:LDI) is facing some financial challenges. According to InvestingPro data, the company's market capitalization stands at $773.36 million, with a negative P/E ratio of -5.94 for the last twelve months as of Q3 2023, indicating that the company is not currently profitable.
Despite these challenges, loanDepot has shown some positive signs. The company's revenue grew by 25.96% in Q3 2023 compared to the previous quarter, reaching $1.01 billion for the last twelve months. Additionally, the gross profit margin remains strong at 88.81%.
InvestingPro Tips highlight that two analysts have revised their earnings upwards for the upcoming period, which could signal some optimism about the company's future performance. However, it's worth noting that the stock price has fallen significantly over the last three months, with a -17.38% total return.
For investors considering loanDepot, it's important to be aware that the stock generally trades with high price volatility. This volatility, combined with the company's current unprofitability, suggests that potential investors should carefully assess the risks and opportunities associated with LDI stock.
InvestingPro offers 11 additional tips for loanDepot, providing a more comprehensive analysis for those interested in delving deeper into the company's financial health and market position.
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