Despite loanDepot's Pullback, Insiders Still Gained US$58k

Insiders who purchased loanDepot, Inc. (NYSE:LDI) shares in the past 12 months are unlikely to be deeply impacted by the stock's 14% decline over the past week. After accounting for the recent loss, the US$410.6k worth of shares they purchased is now worth US$468.4k, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for loanDepot

The Last 12 Months Of Insider Transactions At loanDepot

Over the last year, we can see that the biggest insider purchase was by CEO, President & Director Frank Martell for US$130k worth of shares, at about US$1.77 per share. We do like to see buying, but this purchase was made at well below the current price of US$2.08. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Frank Martell bought 225.21k shares over the last 12 months at an average price of US$1.82. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

loanDepot is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does loanDepot Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. loanDepot insiders own about US$37m worth of shares. That equates to 5.4% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At loanDepot Tell Us?

It doesn't really mean much that no insider has traded loanDepot shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think loanDepot insiders are doubting the company, and they do own shares. Of course, the future is what matters most. So if you are interested in loanDepot, you should check out this free report on analyst forecasts for the company.

But note: loanDepot may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.