Azora Capital LP Cuts Stock Position in LendingClub Corporation $LC

Key Points

• Azora Capital LP sharply reduced its LendingClub stake by 77.6% in the fourth quarter, selling 1.85 million shares and ending with 536,577 shares worth about $10.16 million.
• Other institutional investors were mixed on the stock, with some firms adding shares while others trimmed positions; overall, institutions own 74.08% of LendingClub.
• LendingClub’s recent results and outlook were solid: it beat Q1 earnings and revenue estimates, and analysts currently rate the stock a Moderate Buy with a consensus price target of $23.07.

Azora Capital LP lessened its position in LendingClub Corporation (NYSE:LC - Free Report) by 77.6% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 536,577 shares of the credit services provider's stock after selling 1,854,613 shares during the quarter. Azora Capital LP owned approximately 0.47% of LendingClub worth $10,163,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Comerica Bank raised its holdings in shares of LendingClub by 6,520.7% in the 4th quarter. Comerica Bank now owns 72,232 shares of the credit services provider's stock valued at $1,368,000 after buying an additional 71,141 shares during the period. Vanguard Group Inc. increased its holdings in LendingClub by 4.6% during the 4th quarter. Vanguard Group Inc. now owns 11,697,333 shares of the credit services provider's stock worth $221,547,000 after purchasing an additional 516,542 shares during the period. Wakefield Asset Management LLLP purchased a new stake in LendingClub during the 3rd quarter worth about $1,136,000. American Century Companies Inc. increased its holdings in LendingClub by 19.3% during the 3rd quarter. American Century Companies Inc. now owns 2,071,137 shares of the credit services provider's stock worth $31,461,000 after purchasing an additional 334,914 shares during the period. Finally, Cramer Rosenthal Mcglynn LLC increased its holdings in LendingClub by 44.3% during the 3rd quarter. Cramer Rosenthal Mcglynn LLC now owns 1,657,356 shares of the credit services provider's stock worth $25,175,000 after purchasing an additional 509,008 shares during the period. Hedge funds and other institutional investors own 74.08% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the company. Weiss Ratings restated a "hold (c+)" rating on shares of LendingClub in a report on Wednesday, May 6th. Stephens reaffirmed an "overweight" rating and set a $22.50 price objective (up from $21.00) on shares of LendingClub in a research report on Tuesday, April 28th. Finally, Zacks Research raised LendingClub from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, April 28th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, LendingClub presently has a consensus rating of "Moderate Buy" and a consensus price target of $23.07.

Insider Activity at LendingClub

In other LendingClub news, General Counsel Jordan Cheng sold 5,500 shares of the company's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $17.46, for a total transaction of $96,030.00. Following the completion of the sale, the general counsel directly owned 108,074 shares of the company's stock, valued at $1,886,972.04. This represents a 4.84% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Scott Sanborn sold 4,899 shares of the company's stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $18.00, for a total value of $88,182.00. Following the sale, the chief executive officer directly owned 1,589,813 shares of the company's stock, valued at approximately $28,616,634. This represents a 0.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 59,750 shares of company stock valued at $1,043,691 in the last three months. 3.19% of the stock is currently owned by company insiders.

LendingClub Stock Performance

NYSE:LC opened at $18.83 on Thursday. The stock has a 50-day simple moving average of $16.74 and a 200-day simple moving average of $17.14. The stock has a market cap of $2.17 billion, a P/E ratio of 12.64 and a beta of 1.98. LendingClub Corporation has a 1 year low of $10.74 and a 1 year high of $21.67.

LendingClub (NYSE:LC - Get Free Report) last released its quarterly earnings data on Monday, April 27th. The credit services provider reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.38 by $0.06. The business had revenue of $252.25 million during the quarter, compared to analysts' expectations of $249.10 million. LendingClub had a return on equity of 11.92% and a net margin of 16.99%.The business's quarterly revenue was up 15.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.10 EPS. LendingClub has set its FY 2026 guidance at 1.650-1.800 EPS and its Q2 2026 guidance at 0.400-0.450 EPS. On average, equities research analysts predict that LendingClub Corporation will post 1.74 EPS for the current year.

LendingClub 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.

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