Multiple insiders secured a larger position in loanDepot, Inc. (NYSE:LDI) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
loanDepot Insider Transactions Over The Last Year
The Chairman & CEO Anthony Hsieh made the biggest insider purchase in the last 12 months. That single transaction was for US$8.7m worth of shares at a price of US$6.93 each. That means that an insider was happy to buy shares at above the current price of US$4.90. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid US$10m for 1.48m shares. But they sold 11.87k shares for US$165k. 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
loanDepot Insiders Bought Stock Recently
It's good to see that loanDepot insiders have made notable investments in the company's shares. Specifically, Chairman & CEO Anthony Hsieh bought US$10.0m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Does loanDepot Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.6% of loanDepot shares, worth about US$8.6m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The loanDepot Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on loanDepot stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 4 warning signs for loanDepot you should be aware of, and 2 of these are a bit unpleasant.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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, but not derivative transactions.
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