SCHEDULE: Anthony Hsieh Sells 1.3M loanDepot Shares

Anthony Hsieh, a significant shareholder of loanDepot, Inc., sold 1.3 million shares of Class A Common Stock for approximately $3.73 million.

Summary

• Anthony Hsieh, the Reporting Person, filed Amendment No. 21 to his Schedule 13D regarding beneficial ownership in loanDepot, Inc.
• I beneficially own an aggregate of 112,138,762 shares of Class A Common Stock, representing 47.94% of the class.
• This percentage is calculated based on 112,351,102 Class A shares outstanding on August 6, 2025, plus 1,300,000 shares issued from conversion on September 19, 2025.
• On September 19, 2025, 1,300,000 shares of Class C Common Stock were converted into an equal number of Class A Common Stock.
• On October 14, 2025, I, through the JLSSAA Trust, sold 1,300,000 shares of Class A Common Stock at a weighted average price of $2.8704 per share.
• The sales were executed in multiple transactions ranging from $2.71 to $3.015 per share, pursuant to a Rule 10b5-1 trading plan dated November 20, 2024.
• I also hold 73,819 unvested restricted stock units (RSUs) and 1,500,000 unvested performance stock units (PSUs).

Sentiment

Score: 3

Explanation: The sentiment is negative due to a significant insider sale, which often signals a lack of confidence. While the sale was pre-planned, the sheer volume and the price point could be concerning for investors.

Positives

• The conversion of Class C Common Stock to Class A Common Stock simplifies the capital structure by reducing the number of Class C shares.
• The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a planned divestment rather than an immediate reaction to new, undisclosed information.

Negatives

• A significant insider sale of 1,300,000 shares by a major shareholder (Anthony Hsieh) could be perceived negatively by the market, potentially signaling a lack of confidence.
• The sale occurred at a weighted average price of $2.8704, which might be considered low compared to historical highs, although the filing does not provide context for this.

Risks

• The sale of a substantial number of shares by a key insider could lead to negative market sentiment and potentially depress the stock price.
• A large block of shares being sold could increase selling pressure on the stock.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Industry Context

The sale of a significant block of shares by a major insider in the mortgage lending industry, such as loanDepot, could be interpreted by the market as a signal regarding the insider's view on the company's future prospects or the broader industry's health. Given the current interest rate environment and its impact on mortgage originations, such a sale might amplify concerns about the sector's profitability, although the filing itself does not provide this context.

Comparison to Industry Standards

• The filing does not provide financial or operational results that can be directly compared to industry benchmarks or competitors. It focuses solely on changes in beneficial ownership.

Related Party Transactions

• The conversion of Class C Common Units to Class A Common Stock by Trilogy Mortgage Holdings, Inc. for the benefit of the Reporting Person, followed by the sale, represents a transaction involving a significant shareholder. While structured under a pre-arranged plan, it involves a related party.

Stakeholder Impact

• Shareholders may experience negative sentiment and potential downward pressure on the stock price due to the insider sale.
• Employees: No direct impact mentioned, but a declining stock price could affect morale or equity compensation value.

Next Steps

• The filing does not explicitly mention any future actions, events, or milestones for the company, beyond the ongoing nature of the Rule 10b5-1 trading plan.

Key Dates

Recommendation

The significant sale of 1.3 million shares by a major insider, Anthony Hsieh, even under a 10b5-1 plan, typically signals a lack of conviction in the company's near-term growth or valuation. While the plan itself suggests a pre-determined divestment, the sheer volume and the price point of the sale could be interpreted as a negative indicator, prompting investors to consider reducing their exposure or selling their holdings, especially if they believe the insider has superior information or a more pessimistic outlook.

Keywords

loanDepot, LDI, Anthony Hsieh, Schedule 13D, Insider Sale, Stock Conversion, Class A Common Stock, Class C Common Stock, Beneficial Ownership, Rule 10b5-1 Plan