BTIG initiates coverage on LoanDepot stock with Neutral rating

Published 18/08/2025, 22:26
BTIG initiates coverage on LoanDepot stock with Neutral rating

Investing.com - BTIG initiated coverage on LoanDepot Inc (NYSE:LDI) with a Neutral rating on Monday. The company, currently trading at $1.88 and showing a strong 15% return over the past week, is currently trading below its InvestingPro Fair Value.

The research firm identified LoanDepot as a top-20 mortgage lender with $26 billion in trailing 12-month origination volume and a current servicing portfolio of $118 billion.

BTIG noted the company’s attractive brand recognition among consumers, which can support more effective lead generation compared to other retail lenders.

The firm expressed concerns about LoanDepot’s limited room to source liquidity and cut expenses, which could restrict its competitiveness and challenge its ability to calibrate operations during periods of interest rate volatility. InvestingPro analysis confirms these concerns, with data showing the company is quickly burning through cash, one of several key insights available in the comprehensive Pro Research Report.

BTIG’s Neutral stance is reinforced by its observation that lenders with the most scale generally remain in stronger positions to defend or take additional market share from smaller, more leveraged originators. The company maintains a current ratio of 1.39, while analysts don’t expect profitability this year.

In other recent news, LoanDepot Inc. announced its second-quarter 2025 earnings, which showed a larger-than-expected loss per share (EPS). The company reported an EPS loss of $0.06, surpassing the anticipated loss of $0.02, resulting in a 200% negative surprise. Revenue figures also disappointed, reaching only $282.54 million compared to the forecasted $321.66 million. These results reflect significant financial challenges for LoanDepot, as the earnings and revenue both fell short of expectations. Following this announcement, analysts have been closely monitoring the company’s performance. While specific analyst upgrades or downgrades were not mentioned, the earnings results have likely influenced ongoing assessments. Investors remain attentive to LoanDepot’s financial health amid these recent developments.

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