LoanDepot Shares Soar 3.19% on Executive Share Retention

LoanDepot (LDI) shares surged 3.19% today, marking the second consecutive day of gains, with a total increase of 18.29% over the past two days. The stock price reached its highest level since December 2024, with an intraday gain of 10.64%.

The strategy of buying LDI shares after they reached a recent high and selling them one week later delivered moderate returns but underperformed the benchmark. The strategy’s CAGR was 18.33%, trailing the benchmark by 5.94 percentage points. With a maximum drawdown of 0% and a Sharpe ratio of 0.26, the strategy had minimal risk but lacked sharp performance, making it suitable for investors seeking stability rather than high returns.

One of the key factors influencing LoanDepot's recent stock price movements is the retention of shares by an executive. The executive retained 4.13 million shares, sending a positive signal to the market about the company's alignment with shareholder interests. This move has likely contributed to the recent upward trend in the stock price, as it demonstrates confidence in the company's future prospects.

Analysts have also been active in revising their ratings and price targets for LoanDepot. UBS recently raised its price target for the company from $1.25 to $1.40, while maintaining a "Hold" rating. This adjustment suggests that UBS sees potential for modest growth in LoanDepot's stock price. However, Bank of America Securities maintained a "Sell" rating and decreased its price target from $1.50 to $1.25, indicating a more bearish outlook. Despite these mixed opinions, the overall analyst consensus for LoanDepot remains a "Moderate Sell," with a 12-month average price target of $1.33. This consensus suggests that analysts, on average, expect the stock price to decline from its current level over the next year.