LDI - loanDepot stock slips more after Citi JMP downgrade on challenging backdrop

loanDepot (NYSE:LDI) class A stock is dropping 3.4% in premarket trading after two analysts downgraded the stock as the lenders Q1 results showed drops in volume and profitability. Citi analyst Arren Cyganovich downgraded the stock to Sell from Neutral after loanDepot (LDI) posted a Q1 loss because its expense base cuts couldn't keep up with the decline in production and gain on sale margins. The analyst lowers price target to $2 from $5. "As mortgage rates spiked dramatically over the past several weeks we lower our assumed industry production and LDI's market share as it had a higher share of refinance mortgages, which now likely will dwindle," Cyganovich wrote in a note to clients. JMP analyst Trevor Cranston lowered his rating on the online lender to Market Perform from Market Outperform as "exceptionally challenging market conditions persist." The analyst points to the company's 14% sequential decline in rate lock volume and

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loanDepot stock slips more after Citi, JMP downgrade on challenging backdrop