LendingClub (NYSE:LC) experienced a shift in its stock rating on October 23, 2023, as Zacks Research changed its recommendation from a strong-buy to a hold. This adjustment reflects a broader trend among analysts regarding the company’s performance and market outlook.
Several financial firms have recently evaluated LendingClub’s stock. Janney Montgomery Scott raised its price target from $17.00 to $20.00 while maintaining a “neutral” rating on November 6. Similarly, Piper Sandler reaffirmed an “overweight” rating and adjusted its target price from $18.00 to $20.00. BTIG Research also increased its price target for LendingClub from $18.00 to $26.00, assigning a “buy” rating on the same day. In contrast, Weiss Ratings reiterated a “hold (c)” rating on December 29, and JPMorgan Chase & Co. lifted its price objective from $22.00 to $25.00 on December 4, reflecting a generally positive sentiment among analysts.
As of October 23, six investment analysts regarded LendingClub as a buy, while four maintained a hold rating. According to MarketBeat, the stock currently enjoys an average rating of “Moderate Buy,” with a consensus target price of $21.57.
Stock Performance and Earnings Results
On October 23, 2023, shares of LendingClub opened at $19.93. The company boasts a market capitalization of $2.30 billion, a price-to-earnings ratio of 22.65, and a beta of 2.08. Its fifty-day moving average stands at $18.51, while the two-hundred-day moving average is $16.34. Over the past year, LendingClub’s stock has fluctuated significantly, reaching a low of $7.90 and a high of $20.94.
LendingClub recently reported its earnings on October 22, revealing earnings per share (EPS) of $0.37 for the quarter, surpassing analysts’ expectations of $0.30 by $0.07. The company’s revenue for the quarter was $107.79 million, falling short of the expected $256.27 million. Despite this, LendingClub experienced a year-over-year revenue increase of 31.8%, with the previous year’s EPS recorded at $0.13. Analysts project that the company will achieve an EPS of $0.72 for the current fiscal year.
On November 5, LendingClub’s Board of Directors approved a stock buyback program, allowing the company to repurchase up to $100.00 million in shares, representing approximately 4.9% of its outstanding stock. Such repurchase initiatives often signal that company leadership believes the stock is undervalued.
Insider Transactions and Institutional Holdings
In recent insider trading activity, Director Erin Selleck sold 2,390 shares of LendingClub stock on December 5, 2023, at an average price of $19.47, amounting to a total transaction value of $46,533.30. Following this sale, Selleck retained ownership of 76,377 shares valued at approximately $1,487,060.19, reflecting a 3.03% reduction in her position.
Additionally, CEO Scott Sanborn sold 30,000 shares on October 23, 2023, at an average price of $19.29, resulting in a transaction value of $578,700.00. Post-sale, Sanborn holds 1,210,070 shares, valued at around $23,342,250.30, which represents a 2.42% decrease in his holdings.
Institutional investors have also actively traded LendingClub shares. Notably, Vident Advisory LLC acquired a new stake during the first quarter, valued at approximately $118,000. AQR Capital Management LLC increased its position by 165.1%, now owning 33,788 shares valued at $349,000. Goldman Sachs Group Inc. raised its stake by 1.4%, holding 852,005 shares worth $8,793,000 after acquiring an additional 12,019 shares.
Overall, hedge funds and institutional investors control 74.08% of LendingClub’s stock, indicating a strong confidence in the company’s long-term prospects.
About LendingClub
Founded in 2006 by Renaud Laplanche, LendingClub Corporation operates as an online lending marketplace, connecting borrowers with individual and institutional investors. The platform facilitates personal and small business loans while offering high-yield savings accounts and certificates of deposit through its banking charter, following its acquisition of Radius Bank in 2021. LendingClub’s innovative approach has played a significant role in democratizing access to credit and investment opportunities in the United States.
