IRVINE, Calif.—Anthony Hsieh, a director and significant shareholder of loanDepot, Inc. (NYSE:LDI), a mortgage lender with a market capitalization of $737 million, recently sold shares of the company's Class A common stock. According to InvestingPro data, the company has been facing challenges with profitability and cash management. According to a filing with the Securities and Exchange Commission, Hsieh disposed of a total of 207,375 shares over two transactions on November 27 and November 29. The sales were executed at weighted average prices ranging from $2.269 to $2.2863 per share, amounting to a total value of approximately $473,092. The transactions occurred as the stock trades near $2.26, showing high volatility with a beta of 3.08. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report.
Following these transactions, Hsieh holds 5,476,853 shares indirectly through the JLSSAA Trust, where he has voting and investment power. Additionally, he directly owns 73,781 shares. The transactions reflect Hsieh's ongoing management of his holdings in the mortgage lender, which is based in Irvine, California. Despite revenue growth of 10.4% over the last twelve months, the company's financial health score remains weak according to InvestingPro metrics.
In other recent news, loanDepot has reported a return to profitability in the third quarter of 2024, marking a significant shift from a $29 million loss in the same period the previous year. The company disclosed an adjusted net income of $7 million and a 19% increase in pull-through weighted rate lock volume to $6.7 billion. Furthermore, adjusted total revenue reached $320 million, up from $261 million year-over-year.
CEO Frank Martell introduced Project North Star, a strategic initiative focusing on 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. The company ended Q3 with $483 million in cash, indicating readiness for market opportunities as the housing market shows signs of recovery.
Despite these positive developments, loanDepot faced increased expenses due to higher commissions, marketing, and overtime costs. Executives also discussed strategies for organic growth and potential acquisitions of MSRs, emphasizing the importance of leveraging existing financing lines to support the origination business. The company remains confident in attracting top talent and optimistic about future market leadership.
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