Anthony Li Hsieh, a director and significant shareholder of loanDepot, Inc. (NYSE:LDI), has sold a substantial portion of his holdings in the company. According to a recent filing, Hsieh sold a total of 987,101 shares of Class A Common Stock over two days, December 4 and December 5, 2024. The shares were sold at prices ranging from $2.27 to $2.292 per share, amounting to a total transaction value of approximately $2.26 million. The transaction comes as the company's stock has seen a -35.51% decline year-to-date, though InvestingPro analysis suggests the stock is currently trading below its Fair Value.
Following these transactions, Hsieh holds 3,836,889 shares indirectly through the JLSSAA Trust, where he has voting and investment power as trustee. Additionally, he maintains direct ownership of 88,877 shares. These transactions reflect Hsieh's ongoing management of his investment in loanDepot, a company based in Irvine, California, known for its finance services. With a market capitalization of $734 million and a weak financial health score according to InvestingPro, the company faces challenges including rapid cash burn and high price volatility. Subscribers to InvestingPro can access 8 additional key insights and a comprehensive Pro Research Report for deeper analysis.
In other recent news, loanDepot announced a return to profitability in the third quarter of 2024, posting an adjusted net income of $7 million. This marks a significant recovery from a $29 million loss in the same quarter the previous year. The company also reported a 19% increase in pull-through weighted rate lock volume to $6.7 billion and an increase in adjusted total revenue to $320 million, up 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, on the other hand, projected Q4 2024 pull-through weighted lock volume between $5.5 billion and $7.5 billion.
Despite the positive turn, loanDepot also faced increased expenses due to higher commissions, marketing, and overtime costs. The company, however, ended Q3 with $483 million in cash, ready to seize market opportunities as the housing market shows signs of recovery. These are recent developments that reflect a positive shift in the company's financial health and strategic direction.
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