loanDepot: Bearish As Mortgage Market Struggles

Jul. 31, 2023 5:09 PM ETloanDepot, Inc. (LDI) StockLDI
REC Capital
69 Followers

Summary

  • loanDepot has experienced negative Net Income in recent quarters and this trend is expected to continue. Stock price performance has diverged from negative financial results.
  • The US mortgage market is experiencing headwinds from higher interest rates, as loan originations and applications are dropping.
  • Management insiders have been selling their own stock, and sell-side analysts have a cautious outlook.

Aerial View of Illuminated Homes in Santa Clarita

halbergman

Investment Thesis

loanDepot (NYSE:LDI) stock is up ~50% this year, despite not having a profitable quarter since Q4 21. Analyst consensus points towards another loss this year, and the US mortgage market is experiencing dropping loan applications and originations, which will further impact their

This article was written by

69 Followers
12 years experience in Financial Services in London, and currently working at a Private Equity firm. CFA charterholder.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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