LoanDepot CEO Anthony Li Shifts 66 Million Shares in Quiet Move to Boost Liquidity and Signal Strategic Re‑Org

Insider Activity Highlights the Strategic Shift at loanDepot

Recent filings reveal that Executive Chair, CEO and President Anthony Li has sold a sizable block of Class C common shares while simultaneously acquiring the equivalent value in Class B shares as part of the company’s 2026 re‑organization. The transaction, executed on February 11, 2026 at $2.03 per share, is part of a broader plan to convert LD Holdings’ preferred units into the more liquid Class B equity that will be available to public investors. While the trade itself involved no cash outflow—both sides of the book balanced at zero—the move signals a strategic realignment of Li’s personal equity position as the re‑organization settles.

What It Means for Investors

The sale of over 66 million Class C shares and the corresponding purchase of Class B shares does not alter Li’s overall equity exposure but shifts the risk profile. Class C shares are typically less liquid and carry different voting rights than Class B; moving to the latter could ease future divestiture and improve liquidity for the owner. For the broader shareholder base, the conversion is a positive sign of alignment between the company’s capital structure and its public market presence. However, the fact that Li has also sold Class A shares in the past months (e.g., 884,495 shares on January 15, 2026) indicates a pattern of divestiture that could pressure the stock if the market interprets it as a lack of confidence in near‑term growth. Analysts will watch whether the share‑sale activity precedes any earnings guidance or strategic announcements.

Anthony Li: A Profile of Conservative Consolidation

Li’s insider‑transaction history paints the picture of a founder‑CEO who balances aggressive growth with cautious ownership management. Over the past twelve months he has executed 43 transactions, predominantly large sells of Class A and Class C shares, interspersed with strategic acquisitions of Class B shares tied to the re‑organization. His most recent move—selling 66 million Class C shares while buying back the same number of Class B shares—marks the first time he has transitioned a major block of preferred equity into the common class. Historically, Li has maintained a significant stake in loanDepot (over 28 million common shares post‑transaction), yet his pattern of selling large blocks suggests a desire to diversify his portfolio while keeping a controlling interest in the company’s direction.

Key Takeaways for the Market

1. Liquidity Focus – The conversion of preferred to common equity is intended to align the company’s capital structure with market expectations, potentially smoothing future funding rounds.
2. Owner Confidence – While Li’s selling activity could be read as a lack of confidence, the simultaneous purchase of Class B shares indicates he is not divesting his entire position and remains committed to loanDepot’s long‑term strategy.
3. Price Volatility Context – With a recent 52‑week range between $1.01 and $5.05 and a negative P/E of –5.72, investors should remain cautious of short‑term price swings while evaluating the company’s fundamental resilience.

Conclusion

Anthony Li’s recent insider sale and conversion reflect a deliberate recalibration of his equity profile rather than a precipitous exit. Investors should view the move as part of loanDepot’s broader re‑organization strategy, which seeks to make the company’s shares more accessible and better aligned with public market dynamics. Monitoring future insider activity and corporate announcements will be essential for assessing whether this shift translates into improved financial performance and shareholder value.