loanDepot (NYSE:LDI) Posts Quarterly Earnings Results

loanDepot (NYSE:LDI) announced its quarterly earnings data on Tuesday. The company reported ($0.11) 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 during midday trading on Tuesday, reaching $1.06. 3,711,462 shares of the stock traded hands, compared to its average volume of 2,603,488. The company’s 50 day moving average is $1.15 and its 200 day moving average is $1.56. loanDepot has a one year low of $0.93 and a one year high of $5.05. The company has a debt-to-equity ratio of 10.26, a current ratio of 1.11 and a quick ratio of 1.11. The stock has a market capitalization of $359.78 million, a PE ratio of -3.13 and a beta of 3.37.

Analyst Ratings Changes

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

Institutional Investors Weigh In On loanDepot

A number of hedge funds have recently bought and sold shares of LDI. Invesco Ltd. bought a new position in loanDepot during the first quarter valued at $44,000. Goldman Sachs Group Inc. increased its holdings in shares of loanDepot by 30.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 366,435 shares of the company’s stock worth $436,000 after buying an additional 85,129 shares during the last quarter. Jane Street Group LLC purchased a new stake in shares of loanDepot during the 1st quarter valued at about $122,000. Geode Capital Management LLC raised its position in shares of loanDepot by 134.4% during the 2nd quarter. Geode Capital Management LLC now owns 1,925,712 shares of the company’s stock valued at $2,446,000 after buying an additional 1,104,021 shares in the last quarter. Finally, New York State Common Retirement Fund bought a new position in shares of loanDepot in the 2nd quarter valued at about $98,000. Hedge funds and other institutional investors 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.