LDI Should I Buy
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loanDepot Inc (LDI) is not a strong buy for a beginner, long-term investor at this time. The stock's technical indicators are bearish, and the company is facing financial challenges with declining net income and EPS. While there is some optimism in loan origination growth and AI-driven efficiency improvements, the negative sentiment from analysts, weak technicals, and lack of significant positive catalysts make it prudent to hold off on investing in this stock for now.
The technical indicators for LDI are bearish. The MACD is negatively expanding, RSI is neutral at 27.151, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 1.679), with resistance levels at R1: 2.023 and R2: 2.129. The stock has a 60% chance to decline by -1.14% in the next day, though it may see a potential 11.06% gain in the next month.
Loan origination volume increased by 23% in Q4 2025 to $8.0 billion. The company is emphasizing AI technology to improve operational efficiency. Revenue growth of 20.7% in Q4 2025 and a new wholesale lending channel for mortgage brokers may support future growth.
Rising costs and competition are significant challenges. The MACD and moving averages suggest a bearish trend, and the stock is trading near its support level.
In Q4 2025, loanDepot's revenue increased by 52.22% YoY to $396.89 million. However, net income dropped by -32.36% YoY to -$22.48 million, and EPS fell to 0, a 100% decline YoY. Gross margin improved by 11.37% YoY to 84.94%. While revenue growth is strong, profitability metrics remain weak.
Goldman Sachs maintains a Sell rating on LDI and has lowered the price target from $3 to $2.40. Analysts highlight credit risks as a major concern despite some optimism about loan growth and net interest income momentum.
