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loanDepot gets NYSE notice after shares trade below $1 average
The NYSE said loanDepot has 10 business days to notify its plan and up to six months to get both its share price and 30-day average back above $1, or face potential delisting.
loanDepot Inc. said it received a New York Stock Exchange deficiency notice after the average closing price of its Class A common stock remained below $1 for 30 consecutive trading days, triggering potential delisting risk.
The company said the notice does not immediately affect its NYSE listing, trading, or day-to-day operations, or its SEC reporting obligations. Under NYSE rules, loanDepot has 10 business days from receipt to notify the exchange of its plan, and six months to raise its share price and 30-day average back above $1.
loanDepot said it intends to cure the deficiency and return to compliance with continued listing standards. As possible alternatives, it highlighted a potential reverse stock split that would require shareholder approval at or before its next annual meeting, expected in early June 2027.
In related updates, loanDepot reported a second-quarter net loss of $6.6 million, improved from a first-quarter net loss of $54.9 million. Revenue rose 18% to $337.3 million, originations increased 4% to nearly $8 billion, and its gain on sale margin rose to 3.45% as its mix shifted more toward home equity, HousingWire reported.