Anthony Li Hsieh, a director and ten percent owner of loanDepot, Inc. (NYSE:LDI), recently sold 83,667 shares of the company's Class A common stock. The shares were sold at an average price of $2.338 per share, generating a total of $195,613.
Following this transaction, Hsieh holds 5,684,228 shares indirectly through the JLSSAA Trust, where he has voting and investment power. Additionally, Hsieh directly owns 73,781 shares of loanDepot stock. The sales were executed in multiple transactions, with prices ranging from $2.31 to $2.38 per share.
In other recent news, loanDepot has announced a return to profitability in the third quarter of 2024, with an adjusted net income of $7 million, a significant improvement from a $29 million loss in the same quarter the previous year. The company reported a 19% increase in pull-through weighted rate lock volume to $6.7 billion and a rise in adjusted total revenue to $320 million, up from $261 million year over year. This marks a recovery in the housing market.
CEO Frank Martell introduced Project North Star, a strategic initiative aimed at sustaining revenue growth and enhancing customer experiences. CFO David Hayes projected 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.
However, loanDepot also faced increased expenses in Q3 2024 due to higher commissions, marketing, and overtime costs. The company's executives have discussed strategies for organic growth and potential acquisitions of MSRs, leveraging existing financing lines to support the origination business. Despite the challenges, loanDepot remains confident in attracting top talent and achieving future market leadership.
InvestingPro Insights
The recent insider sale by Anthony Li Hsieh comes at a time when loanDepot, Inc. (NYSE:LDI) is facing some financial challenges. According to InvestingPro data, the company's market capitalization stands at $750.47 million, with a negative P/E ratio of -5.82 for the last twelve months as of Q3 2024. This suggests that the company is currently unprofitable, which aligns with an InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year.
Despite these challenges, loanDepot has shown some positive signs. The company's revenue for the last twelve months as of Q3 2024 was $1.01 billion, with a notable revenue growth of 25.96% in Q3 2024 compared to the previous quarter. This growth could be a factor in the recent stock price movements, as another InvestingPro Tip notes that the stock generally trades with high price volatility.
It's worth noting that loanDepot's stock price has fallen significantly over the last three months, according to an InvestingPro Tip. This context adds importance to the timing of Hsieh's stock sale. Investors considering loanDepot might find value in exploring the additional 8 InvestingPro Tips available, which could provide further insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.