Press Alt+1 for screen-reader mode, Alt+0 to cancelAccessibility Screen-Reader Guide, Feedback, and Issue Reporting | New window
timothy sykes logo

Stock News

Strategic Acquisition Boosts Confidence in loanDepot Inc.’s Future

Ellis HobbsAvatar
Written by Ellis Hobbs Reviewed by Jack Kellogg Fact-checked by Tim Sykes
Updated 9/6/2025, 9:24 am ET | 5 min
Strategic Acquisition Boosts Confidence in loanDepot Inc.’s Future Thumbnail

In this article

  • LDI+0.94%
    LDI - NYSEloanDepot Inc. Class A
    $3.23+0.03 (+0.94%)
    Volume:  138545
    Float:  226.35M
    $3.12Day Low/High$3.23

loanDepot Inc. stocks have been trading up by 36.84 percent following favorable market sentiment despite mortgage rate concerns.

Finance industry expert:

Analyst sentiment – neutral

  1. Market Position & Fundamentals: LDI’s current market position is precarious given a negative EBIT margin of -3.6% and an operating loss reflected by its profit margin contract at -12.61%. This underperformance is exacerbated by a significant decline in revenue, down 32.44% over three years. Its financial strength is concerning, with a high total debt to equity ratio of 16.59 and leverage at 22.8, indicating considerable risk. The negative return on equity and capital further signals operational inefficiencies. Nevertheless, LDI’s Price to Sales ratio of 0.97 suggests the stock may be undervalued relative to sales despite these challenges.

  2. Technical Analysis & Trading Strategy: Over recent weeks, LDI shares have displayed bullish momentum with a rally from an opening price of 1.97 to a close at 3.12, moving past significant resistance levels. The volume spike on increased price action confirms buyer interest. The dominant trend is upward, indicating potential continuation. Traders may consider accumulating positions at 2.50–2.70 to capitalize on retracements, with an initial target exit at 3.50, placing stops around 2.20 to limit downside exposure.

  3. Catalysts & Outlook: Recent news of significant beneficial ownership increases suggests growing investor confidence in LDI’s potential turnaround. This aligns with improved price patterns and indicates positive expectations. Comparatively, LDI underperforms financial benchmarks due to prior losses, yet impending ownership changes can signal a strategic shift, enhancing its outlook. Current resistance at $3.20 serves as a pivotal point; a breakout past this could propel the stock to the next target at $4.00, yet caution is warranted due to underlying financial risks. Overall, while LDI embodies risk, the market sentiment is cautiously optimistic.

Candlestick Chart

Weekly Update Sep 01 – Sep 05, 2025: On Saturday, September 06, 2025 loanDepot Inc. stock [NYSE: LDI] is trending up by 36.84%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

loanDepot Inc.’s recent trading patterns have been revealing. From September 2 to 5, the company’s stock saw significant volatility. Opening at $1.97 on September 2, the stock closed at $2.02 the same day. Subsequent days saw notable climbs, with a particularly substantial rise on September 4, closing at $2.27, and further ascending to a close of $3.12 on September 5. This volatility indicates heightened investor activity, possibly fueled by recent developments in ownership filings.

Financial ratios paint a challenging picture; notably, a pretax profit margin of 7.5% is offset by a troubling negative total profit margin of -9.61%. Furthermore, revenue has seen a decline over the past three years, adding complexity to investor decisions. Yet, despite these figures, the company’s price-to-sales ratio sits comfortably at 0.97, reflecting a fair valuation relative to sales. Additionally, the asset turnover ratio of 0.1 and the high leverage ratio of 22.8 suggest operational and financial challenges that management must strategically address.

More Breaking News

Recent changes in beneficial ownership could catalyze the company’s revaluation by investors, offering potential strategic advantages. The market’s bullish response, visible in the recent price uptick, indicates renewed interest. Investors appear optimistic, likely speculating on strategic growth or transformative deals aimed at reversing declining revenue trends.

Conclusion

In summary, loanDepot Inc. is navigating a period of significant transition marked by strategic ownership changes that signal possible shifts in its growth trajectory. The fluctuating stock price and increased market activity underscore the attention these developments have garnered. As millionaire penny stock trader and teacher Tim Sykes says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” While financial metrics illustrate challenges, the market’s optimistic response to recent ownership announcements reflects expectations for potential strategic opportunities and growth initiatives. Traders will continue monitoring how the company capitalizes on these changes to stabilize and enhance its market standing.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
Dig into StocksToTrade’s watchlists here:

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply
Author card Timothy Sykes picture

Ellis Hobbs

Trainer and Mentor on Tim Sykes’ Trading Challenge
He teaches webinars on Tim Sykes’ Trading Challenge He treats trading like a business, not a hobby He emphasizes taking small risks — “If you get the process right, money is a forgone conclusion.”
Read More

In this article (YTD Performance)

  • LDI+56.86%
    LDI - NYSEloanDepot Inc. Class A
    $3.23+0.03 (+0.94%)
    Volume:  138545
    Float:  226.35M
    $3.12Day Low/High$3.23

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

ts swipe photo
Join Thousands Profiting From Smart Trades!
TRADE LIKE TIM

We use cookies to provide you with the best online experience. If you continue browsing, we consider that you accept our Cookie Policy , and also agree to the terms of our Privacy Policy and Terms of Use.

notification icon
Subscribe to receive notifications