Shares of consumer lending and real estate services provider LoanDepot, Inc. (LDI) closed nearly 22% higher on Monday after the company’s earnings and revenue for the third quarter of 2021 exceeded expectations.
The stock, however, slipped 1%, at the time of writing, in the early trading session on Tuesday.
Headquartered in California, LoanDepot offers mortgage and non-mortgage lending products. It also provides settlement, real estate, and insurance brokerage services.
The company reported adjusted earnings per share (EPS) of $0.46, significantly higher than $0.07 in the second quarter of 2021 and analysts’ expectations of $0.39.
Total revenue increased 18% quarter-over-quarter to $923.76 million, beating the Street’s estimate of $881.66 million. (See Insiders’ Hot Stocks on TipRanks)
The CEO of LoanDepot, Anthony Hsieh, said, “The third quarter proved to be another strong milestone in market share growth, increasing to 3.5% from 2.4% during the same quarter last year.”
“Looking ahead, we believe our industry is moving towards consolidation of service providers for products and services for the homeowner and LoanDepot is leading the way. We are uniquely positioned with the brand, technology and scale to invest in these additional products and services,” Hsieh added.
Following the release of the third-quarter results, Citigroup (C) analyst Arren Cyganovich maintained a Buy rating on the stock but lowered the price target to $12 from $14 (64.6% upside potential).
In a research note to investors, the analyst said, “The underlying mortgage origination backdrop remains challenging with overcapacity issues and expected declines in refinance volumes over the next couple of years.”
Overall, the stock has a Moderate Buy consensus rating based on 5 Buys, 4 Holds and 1 Sell. The average LoanDepot price target of $10.35 implies 42% upside potential. Shares have lost 63.6% over the past year.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on LoanDepot, with 16.8% of investors on TipRanks increasing their exposure to the stock over the past 30 days.
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