Have loanDepot Insiders Been Selling Stock?

Some loanDepot, Inc. (NYSE:LDI) shareholders may be a little concerned to see that the Founder & Chairman, Anthony Hsieh, recently sold a substantial US$674k worth of stock at a price of US$2.50 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.6%.

View our latest analysis for loanDepot

The Last 12 Months Of Insider Transactions At loanDepot

In fact, the recent sale by Founder & Chairman Anthony Hsieh was not their only sale of loanDepot shares this year. Earlier in the year, they fetched US$2.96 per share in a -US$1.7m sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$2.27. So it is hard to draw any strong conclusion from it.

In total, loanDepot insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of loanDepot

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. loanDepot insiders own about US$52m worth of shares. That equates to 6.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The loanDepot Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for loanDepot (of which 1 is concerning!) you should know about.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.