Anthony Hsieh, a director at loanDepot, Inc. (NYSE:LDI), has recently sold a significant portion of Class A Common Stock. According to the latest SEC filings, Hsieh sold a total of 946,061 shares over three transactions between December 12 and December 16, 2024. The company, currently valued at $688 million, has shown significant stock price volatility according to InvestingPro data, with shares down about 40% year-to-date. The sales were executed at prices ranging from $2.081 to $2.12 per share, amounting to a total value of approximately $1.99 million.
Following these transactions, Hsieh retains ownership of 2,479,960 shares indirectly through the JLSSAA Trust, where he holds voting and investment power. Additionally, Hsieh holds 88,877 shares directly. These transactions highlight a notable reduction in Hsieh's holdings in the company, which operates in the finance services sector.
In other recent news, loanDepot has reported a return to profitability in the third quarter of 2024, marking a significant shift from a $29 million loss in the same quarter the previous year. The company's adjusted net income for Q3 2024 was $7 million. It also saw a 19% increase in pull-through weighted rate lock volume, reaching $6.7 billion, and a rise in adjusted total revenue to $320 million. These recent developments signal a recovery in the housing market.
CEO Frank Martell has introduced Project North Star, a strategic initiative aimed at sustaining revenue growth and enhancing customer experiences. Meanwhile, CFO David Hayes has projected a Q4 2024 pull-through weighted lock volume between $5.5 billion and $7.5 billion. The company ended Q3 with $483 million in cash, prepared for market opportunities as the housing market shows signs of recovery. Despite these positive trends, loanDepot did face increased expenses due to higher commissions, marketing, and overtime costs.
The company's outlook remains positive for 2025, with ongoing investments in operational efficiency and new products for first-time homebuyers. The successful completion of Vision 2025 strategic program with cost reductions exceeding $730 million also contributes to this optimistic outlook. The joint venture with Smith Douglas offers a predictable business model and new market opportunities.
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