Anthony Hsieh, a director and significant shareholder of loanDepot, Inc. (NYSE:LDI), has recently sold a substantial portion of his holdings in the company. According to a recent filing, Hsieh disposed of a total of 652,863 shares over two transactions on December 2 and December 3, 2024. The company, currently valued at $759 million, has shown concerning financial metrics according to InvestingPro analysis, with a weak overall financial health score.
The sales were executed at prices ranging from $2.203 to $2.252 per share, amounting to a total transaction value of approximately $1.44 million. Following these transactions, Hsieh holds 4,823,990 shares indirectly through the JLSSAA Trust, over which he has voting and investment power. InvestingPro data reveals the stock has exhibited high price volatility, with a beta of 3.05, while carrying a concerning debt-to-equity ratio of 17.48.
Additionally, on December 2, Hsieh acquired 15,096 shares through the exercise of restricted stock units, which were settled at no cost. This acquisition brings his direct holdings to 88,877 shares.
These transactions reflect Hsieh's ongoing management of his investment in loanDepot, a company engaged in the finance services sector.
In other recent news, loanDepot has reported a return to profitability in the third quarter of 2024. The mortgage lender announced an adjusted net income of $7 million, a significant recovery from a $29 million loss in the same quarter the previous year. This was accompanied by a 19% increase in pull-through weighted rate lock volume to $6.7 billion and a rise in adjusted total revenue to $320 million from $261 million year-over-year.
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. Despite the positive developments, the company faced increased expenses due to higher commissions, marketing, and overtime costs.
loanDepot ended Q3 with $483 million in cash, positioning itself for market opportunities as the housing market shows signs of recovery. Executives discussed strategies for organic growth and potential acquisitions of MSRs, leveraging existing financing lines to support the origination business. The company's recent performance indicates a positive shift in its financial health and strategic direction, with a focus on operational efficiency and customer experience.
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