Investors of loanDepot, Inc. (NYSE:LDI) may be interested to learn that Dan Binowitz, the company's Managing Director, recently sold a significant number of shares. According to the latest filings, Binowitz sold 13,900 shares of loanDepot's Class A Common Stock at an average price of $2.34 per share, totaling over $32,525.
The transactions were carried out on March 20, 2024, and were part of a pre-arranged trading plan under Rule 10b5-1, which was adopted by Binowitz on November 28, 2023. This rule allows company insiders to set up a trading plan for selling stocks they own in a way that avoids accusations of insider trading, by establishing a predetermined plan to sell stocks at a time when they are not in possession of material non-public information.
The sold shares were priced within a range of $2.18 to $2.55, with the reported weighted average price being $2.34. Post-transaction, Binowitz's holdings in loanDepot's Class A Common Stock have decreased, yet he still retains a substantial 783,251 shares directly.
For interested parties, Binowitz has committed to providing the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission, upon request, the specific details of the trade amounts and pricing within the range he reported.
This sale could be of interest to current and potential shareholders as they monitor insider activity for insights into the company's performance and stock valuation. LoanDepot, Inc., based in Irvine, California, operates in the finance services sector and has been a notable player in the mortgage industry.
InvestingPro Insights
Investors following loanDepot, Inc. (NYSE:LDI) should note the company's recent financial performance and market standing, as these factors may provide context to the insider trading activity. According to InvestingPro data, loanDepot has a market capitalization of $836.8 million, underscoring its presence in the financial services sector despite challenging market conditions.
The company's price-to-earnings (P/E) ratio stands at -4.13, indicating that it has been unprofitable over the last twelve months. This aligns with an InvestingPro Tip that analysts do not expect the company to be profitable this year. Additionally, the company's stock price has experienced significant volatility, with a 14.55% return over the last week, yet a -23.17% return over the last three months, and a substantial 38.46% return over the last six months. This could suggest a period of market correction or investor uncertainty about the company's future.
Moreover, loanDepot does not pay dividends, which may influence the investment strategy for income-focused shareholders. This detail, along with the company's cash burn and recent downgrades by analysts, as highlighted by InvestingPro Tips, may be critical for investors assessing the risk and potential of their investment in loanDepot.
For those looking for more comprehensive analysis and additional insights, there are 12 more InvestingPro Tips available at: https://www.investing.com/pro/LDI. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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