Form 4: loanDepot CEO Sells Over 550K Shares Under 10b5-1 Plan

loanDepot's Executive Chair, CEO, and President, Anthony Li Hsieh, sold 550,359 shares of Class A Common Stock in two transactions in mid-December 2025 under a pre-arranged trading plan.

Summary

• Anthony Li Hsieh, Executive Chair, CEO, and President of loanDepot, Inc., and a 10% owner, sold a total of 550,359 shares of Class A Common Stock.
• The sales occurred on December 15, 2025, and December 16, 2025.
• These transactions were executed pursuant to a Rule 10b5-1 trading plan adopted on November 20, 2024.
• On December 15, 2025, 260,251 shares were sold at a weighted average price of $2.4908 per share, with individual transaction prices ranging from $2.455 to $2.60.
• On December 16, 2025, 290,108 shares were sold at a weighted average price of $2.4086 per share, with individual transaction prices ranging from $2.38 to $2.48.
• Following these transactions, Mr. Hsieh directly beneficially owns 1,039,749 shares and an additional 168,283 shares, and indirectly beneficially owns 749,641 shares through The JLSSAA Trust, over which he has voting and investment power.

Sentiment

Score: 3

Explanation: The significant insider selling by the CEO and 10% owner, even under a 10b5-1 plan, is generally perceived negatively by the market as it reduces the executive's direct stake and could signal a lack of strong conviction in future price appreciation. The sales at current price levels further contribute to a cautious sentiment.

Positives

• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a planned divestment strategy rather than an immediate reaction to new, undisclosed information.

Negatives

• Significant insider selling by a key executive (Executive Chair, CEO, and President) and 10% owner, even if pre-planned, can be perceived negatively by the market, potentially signaling a lack of confidence or a desire to diversify personal holdings.
• The sales occurred at relatively low share prices ($2.4908 and $2.4086), which might suggest the executive believes the current valuation is acceptable for divestment.

Risks

• Potential negative market perception due to significant insider selling by a top executive, which could lead to downward pressure on the stock price.
• The sales reduce the direct equity stake of a key leader, which could be interpreted as a decrease in alignment with shareholder interests, although a substantial holding remains.

Future Outlook

No specific forward-looking statements or guidance are provided in this Form 4 filing, as it primarily reports past transactions.

Management Comments

• The reporting person undertakes to provide the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission, upon request, specific trade amounts and pricing within the ranges set forth in this footnote of this Form 4 at which the respective transactions were affected.

Industry Context

This Form 4 filing reports an insider transaction and does not provide broader industry context. Insider sales can sometimes be interpreted in the context of industry-specific challenges or opportunities, but the filing itself offers no such details.

Comparison to Industry Standards

• This filing reports insider trading activity, which is not typically compared to industry standards or global benchmarks in the same way financial performance or project results are. The activity is standard for executives managing personal portfolios.

Related Party Transactions

• The transactions involve Anthony Li Hsieh, the Executive Chair, CEO, and President, and a 10% owner, selling shares. Additionally, some shares are held indirectly through The JLSSAA Trust, over which Mr. Hsieh has voting and investment power, making these related party dealings.

Stakeholder Impact

• Shareholders: May view the significant insider selling negatively, potentially leading to downward pressure on the stock price due to perceived lack of confidence from a key executive.
• Employees: No direct impact mentioned, but a declining stock price could affect morale or the value of equity-based compensation.

Next Steps

• The reporting person undertakes to provide specific trade amounts and pricing within the reported ranges upon request from the issuer, security holders, or the SEC staff.

Key Dates

Recommendation

The substantial sale of shares by the Executive Chair, CEO, and 10% owner, Anthony Li Hsieh, even under a Rule 10b5-1 plan, typically signals a lack of strong conviction in the company's near-term stock price appreciation. While planned, such large-scale insider selling, especially at current price levels, often precedes periods of underperformance or reflects a belief that the stock is adequately valued. For a seasoned investor, this action by a key insider would warrant a cautious stance, suggesting a 'sell' recommendation to mitigate potential downside risk or reallocate capital to opportunities with stronger insider alignment.

Keywords

loanDepot, LDI, Anthony Hsieh, Insider Selling, Form 4, SEC Filing, Rule 10b5-1, Stock Sale, Executive Compensation, Beneficial Ownership