Yahoo Finance Insider Spends US$100k Buying More Shares In loanDepot
Even if it's not a huge purchase, we think it was good to see that Frank Martell, the CEO, President & Director of loanDepot, Inc. (NYSE:LDI) recently shelled out US$100k to buy stock, at US$1.99 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 12%.
See our latest analysis for loanDepot
loanDepot Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Founder & Chairman Anthony Hsieh bought US$511k worth of shares at a price of US$1.59 per share. Even though the purchase was made at a significantly lower price than the recent price (US$1.94), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 636.54k shares worth US$1.0m. On the other hand they divested 378.45k shares, for US$657k. Overall, loanDepot insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does loanDepot Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 5.3% of loanDepot shares, worth about US$18m. 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?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of loanDepot we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of loanDepot.
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.
