loanDepot (NYSE:LDI) Announces Quarterly Earnings Results

loanDepot (NYSE:LDI) announced its quarterly earnings data on Tuesday. The company reported ($0.11) earnings per share (EPS) for the quarter, Zacks reports. loanDepot had a negative net margin of 6.51% and a negative return on equity of 22.35%.

Here are the key takeaways from loanDepot’s conference call:

• Home equity lending gained traction, with unit volume up 25% sequentially as the company expanded its HELOC and 5×5 Home Loan offerings. Management expects continued growth, citing higher margins, lower production costs, and lower rate sensitivity than traditional mortgage products.
• Second-quarter adjusted net loss narrowed to $29 million from $34 million in the first quarter, while revenue rose to $308 million and gain-on-sale margins improved to 345 basis points from 271 basis points. For the third quarter, loanDepot guided to 360–390 basis points of gain-on-sale margin and somewhat lower expenses.
• The company reported stronger purchase-market momentum, including a 33% increase in purchase market share, an 18% increase in loan officers, and improved marketing efficiency. Management also said its reintroduced wholesale channel is tracking ahead of schedule.
• Cash declined by $48 million sequentially to $229 million, keeping liquidity and upcoming bond maturities as key priorities. Management is pursuing financing alternatives and recently monetized approximately $10 billion of mortgage servicing rights, but the transaction is expected to settle later in the year.

loanDepot Price Performance

Shares of NYSE:LDI traded down $0.01 on Tuesday, reaching $1.06. 3,711,462 shares of the company were exchanged, compared to its average volume of 2,603,488. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 10.26. loanDepot has a 1-year low of $0.93 and a 1-year high of $5.05. The firm has a market cap of $359.78 million, a price-to-earnings ratio of -3.13 and a beta of 3.37. The company has a 50-day moving average of $1.15 and a 200-day moving average of $1.56.

Analysts Set New Price Targets

Several brokerages have recently weighed in on LDI. Zacks Research raised shares of loanDepot from a “strong sell” rating to a “hold” rating in a report on Wednesday, July 29th. The Goldman Sachs Group cut their price target on shares of loanDepot from $2.10 to $1.25 and set a “sell” rating for the company in a report on Wednesday, July 15th. Weiss Ratings restated a “sell (d-)” rating on shares of loanDepot in a research report on Friday, July 17th. Finally, Wall Street Zen downgraded shares of loanDepot from a “hold” rating to a “sell” rating in a research report on Saturday, June 20th. Three equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Reduce” and an average price target of $2.00.

Institutional Trading of loanDepot

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Russell Investments Group Ltd. acquired a new position in loanDepot during the third quarter worth about $35,000. Bank of Montreal Can acquired a new stake in shares of loanDepot during the 4th quarter valued at approximately $38,000. Insigneo Advisory Services LLC purchased a new stake in shares of loanDepot during the 4th quarter worth approximately $39,000. BNP Paribas Financial Markets boosted its stake in shares of loanDepot by 179.5% during the 3rd quarter. BNP Paribas Financial Markets now owns 19,420 shares of the company’s stock worth $60,000 after acquiring an additional 12,472 shares in the last quarter. Finally, Mariner LLC acquired a new stake in shares of loanDepot in the 4th quarter worth approximately $49,000. Institutional investors and hedge funds own 39.39% of the company’s stock.

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.