loanDepot Inc. (NYSE:LDI) shares plunge 7.08% on insider selling and mixed analyst outlooks

loanDepot Inc. (NYSE:LDI) shares fell 7.0833% in pre-market trading on Thursday, December 18, 2025, following a series of insider selling activities and mixed analyst outlooks.

The selloff was driven by continued large-scale stock disposals by CEO Anthony Li Hsieh, who has executed multiple transactions over recent months. On December 15 alone, he sold 260,251 shares at $2.49, reducing his stake by 20.02% to 1,039,749 shares. This follows prior sales totaling over 5.5 million shares since October, signaling growing executive caution ahead of year-end.

Analyst sentiment remains divided. While UBS Group upgraded its price target to $3.00 with a "neutral" rating, Weiss Ratings reiterated a "sell (d-)" assessment. The stock currently trades at $2.23, below its 50-day moving average of $2.88, and faces pressure from a high debt-to-equity ratio of 6.94. Institutional ownership remains concentrated, with hedge funds holding 39.39% of shares after Goldman Sachs and Charles Schwab significantly increased positions in Q1.

Market participants will closely watch whether insider selling stabilizes and how the company executes its mortgage origination strategy in a challenging interest rate environment. The stock's volatility reflects ongoing uncertainty about its path to profitability despite recent earnings surprises.