Loandepot (LDI) | News Based Sentiment Analysis

• On September 6, 2025, loanDepot reported Q2 2025 revenue of $283 million, a 3% increase from the prior quarter, and adjusted revenue rose to $292 million, up 5%. However, the company posted a loss per share of $0.06, falling short of expectations, highlighting ongoing profitability challenges.
• Following the disappointing Q2 results, Anthony Li Hsieh was appointed as permanent CEO on September 6, 2025, with a focus on growth and digital transformation, and new leadership was added with the appointments of Chief Digital Officer Dominick Marchetti and Chief Innovation Officer Sean DeJulia. To incentivize these new leaders, LoanDepot granted Marchetti 2,000,000 performance stock units and DeJulia 750,000 restricted stock units on September 15, 2025, vesting over three years.
• Insider selling dominated much of the month, beginning with President Jeff Alexander Walsh selling 140,000 shares between August 28th and September 2nd, 2025, totaling $284,389.00. CEO Anthony Li Hsieh then sold over 1.2 million shares between September 2nd and September 9th, 2025, including over $2.4 million on September 4th alone, raising concerns about management’s confidence in the turnaround.
• Despite the negative sentiment from insider sales, the stock experienced a surge on September 8, 2025, jumping 32% after Citron Research labeled LDI “The Hidden Gem of Housing Finance,” projecting a potential valuation of $6-6.75 per share. This surge proved short-lived, as the stock gapped down to $3.52 on September 9th following the continued insider sales.
• Further insider activity continued throughout September, with CAO Darren Graeler selling 100,000 shares on September 11, 2025, for $430,000.00, and CIO Jeffrey DerGurahian exercising options and selling 608,779 shares. Directors and PCP Managers sold a combined $5.96 million in Class A Common Stock on September 15th and 16th.
• On September 15, 2025, CEO Anthony Li Hsieh sold 1,350,000 shares at an average price of $4.61, totaling $6,223,500.00, a 49.06% decrease in his ownership. This substantial sale, combined with previous insider activity, continued to weigh on investor sentiment, and contributed to a gap down to $4.26 on September 21, 2025, from a closing price of $4.44 the previous day.
• LoanDepot continued its "Vision 2025" turnaround plan, filing a US$24.9 million shelf registration on September 14, 2025, for approximately 5,874,020 shares of Class A Common Stock related to its Employee Stock Ownership Plan, and completing a US$150 million secured term notes offering on September 21, 2025. The company reported substantial liquidity of over US$400 million in cash.
• Institutional investor activity was mixed in Q2 2025, with 50 adding shares and 62 decreasing positions. BlackRock, Inc. notably added 4,042,370 shares (+2210.0%) for an estimated $5,133,809, while Philadelphia Financial Management of San Francisco, LLC removed 1,234,576 shares (-100.0%).

The Investment Story: September was a deeply conflicted month for loanDepot, characterized by disappointing financial results, a flurry of insider selling, a brief and ultimately unsustainable stock surge, and continued efforts to execute its "Vision 2025" turnaround plan. The leadership changes are underway, but the market remains skeptical.

What It Means for Investors: The extensive insider selling is a major red flag, overshadowing any positive developments. While the Citron Research report offered a temporary boost, the stock’s volatility and mixed financials indicate a high-risk investment. The capital raising activities suggest a need to bolster liquidity, but also dilute existing shareholders.

Looking Ahead: Investors should closely monitor the Q3 earnings report scheduled for November 4, 2025, and pay close attention to any further insider trading activity. The company’s ability to achieve its projected 2028 revenue of $1.8 billion and $80.2 million in earnings will be critical.

The Bottom Line: loanDepot remains a highly speculative investment. The combination of insider selling, volatile stock performance, and mixed financial results warrants extreme caution, despite the potential for a turnaround if the company can successfully execute its strategic initiatives.