LendingClub (NYSE:LC) Releases Earnings Results

LendingClub (NYSE:LC) announced its quarterly earnings data on Wednesday. The credit services provider reported $0.35 EPS for the quarter, beating the consensus estimate of $0.34 by $0.01, FiscalAI reports. The firm had revenue of $266.47 million for the quarter, compared to the consensus estimate of $262.88 million. LendingClub had a net margin of 10.94% and a return on equity of 7.68%.

LendingClub Trading Down 5.9%

Shares of LC stock traded down $1.24 during mid-day trading on Wednesday, reaching $19.57. The stock had a trading volume of 5,012,020 shares, compared to its average volume of 1,954,066. The business’s fifty day moving average is $19.32 and its 200-day moving average is $17.20. The firm has a market cap of $2.26 billion, a price-to-earnings ratio of 22.24 and a beta of 2.08. LendingClub has a 1-year low of $7.90 and a 1-year high of $21.67.

Analysts Set New Price Targets

A number of analysts have issued reports on LC shares. JPMorgan Chase & Co. lifted their price objective on LendingClub from $22.00 to $25.00 and gave the stock an “overweight” rating in a research note on Thursday, December 4th. Zacks Research cut shares of LendingClub from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. Weiss Ratings reiterated a “hold (c)” rating on shares of LendingClub in a research report on Monday, December 29th. Piper Sandler reiterated an “overweight” rating and set a $20.00 price objective (up previously from $18.00) on shares of LendingClub in a research report on Thursday, October 23rd. Finally, Janney Montgomery Scott increased their target price on shares of LendingClub from $17.00 to $20.00 and gave the company a “neutral” rating in a research note on Thursday, November 6th. Six investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $21.57.

LendingClub announced that its Board of Directors has authorized a share repurchase plan on Wednesday, November 5th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the credit services provider to purchase up to 4.9% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Erin Selleck sold 2,390 shares of the firm’s stock in a transaction on Friday, December 5th. The shares were sold at an average price of $19.47, for a total transaction of $46,533.30. Following the completion of the transaction, the director owned 76,377 shares of the company’s stock, valued at $1,487,060.19. This trade represents a 3.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 3.31% of the company’s stock.

Institutional Investors Weigh In On LendingClub

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Wellington Management Group LLP lifted its holdings in LendingClub by 18.8% in the third quarter. Wellington Management Group LLP now owns 7,960,550 shares of the credit services provider’s stock valued at $120,921,000 after acquiring an additional 1,261,861 shares during the last quarter. Balyasny Asset Management L.P. raised its stake in shares of LendingClub by 12.9% in the 3rd quarter. Balyasny Asset Management L.P. now owns 1,984,349 shares of the credit services provider’s stock valued at $30,142,000 after acquiring an additional 226,325 shares during the period. Bank of America Corp DE lifted its holdings in shares of LendingClub by 32.1% in the 2nd quarter. Bank of America Corp DE now owns 961,530 shares of the credit services provider’s stock worth $11,567,000 after acquiring an additional 233,665 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in shares of LendingClub by 1.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 852,005 shares of the credit services provider’s stock worth $8,793,000 after purchasing an additional 12,019 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. boosted its position in shares of LendingClub by 24.5% during the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 830,979 shares of the credit services provider’s stock worth $12,623,000 after purchasing an additional 163,310 shares during the period. Institutional investors and hedge funds own 74.08% of the company’s stock.

LendingClub Company Profile

LendingClub Corporation operates an online lending marketplace that connects borrowers seeking personal and small business credit with individual and institutional investors. The platform leverages technology to streamline the loan application and underwriting process, offering unsecured personal loans, auto refinancing, and small business loans. In addition to lending products, LendingClub provides high-yield savings accounts and certificates of deposit through its banking charter, following its acquisition of Radius Bank in 2021.

Founded in 2006 by Renaud Laplanche, LendingClub pioneered peer-to-peer lending in the United States, helping to democratize access to credit and investment opportunities.