Investors Purchase Large Volume of LendingClub Call Options (NYSE:LC)

Key Points

• Traders purchased a significant number of 6,991 call options on LendingClub, representing a 671% increase over the typical volume.
• CEO Scott Sanborn sold 5,250 shares of LendingClub stock for a total of approximately $68,145, reducing his ownership by 0.41%.
• LendingClub's stock is up 18.8%, with shares trading at $15.57 during midday trading and a market capitalization of $1.78 billion.

LendingClub Corporation (NYSE:LC - Get Free Report) was the target of some unusual options trading on Wednesday. Investors bought 6,991 call options on the stock. Thisrepresentsanincreaseof671% compared to the average volume of 907 call options.

Insider Buying and Selling

In other LendingClub news, CEO Scott Sanborn sold 5,250 shares of the firm's stock in a transaction on Thursday, July 17th. The stock was sold at an average price of $12.98, for a total transaction of $68,145.00. Following the transaction, the chief executive officer directly owned 1,283,175 shares in the company, valued at approximately $16,655,611.50. This trade represents a 0.41% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders sold 26,250 shares of company stock valued at $302,610 in the last quarter. Corporate insiders own 3.19% of the company's stock.

Hedge Funds Weigh In On LendingClub

Hedge funds and other institutional investors have recently bought and sold shares of the company. Bank of America Corp DE grew its position in shares of LendingClub by 111.5% during the 4th quarter. Bank of America Corp DE now owns 402,033 shares of the credit services provider's stock valued at $6,509,000 after purchasing an additional 211,979 shares in the last quarter. Wealth Enhancement Advisory Services LLC purchased a new position in shares of LendingClub during the first quarter valued at approximately $161,000. Raymond James Financial Inc. purchased a new stake in shares of LendingClub in the fourth quarter worth $1,696,000. Invesco Ltd. boosted its position in shares of LendingClub by 87.1% during the fourth quarter. Invesco Ltd. now owns 637,458 shares of the credit services provider's stock worth $10,320,000 after acquiring an additional 296,813 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in LendingClub by 62.3% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 289,251 shares of the credit services provider's stock valued at $4,683,000 after purchasing an additional 111,031 shares during the last quarter. Institutional investors and hedge funds own 74.08% of the company's stock.

LendingClub Trading Down 2.2%

NYSE LC traded down $0.34 during trading on Friday, hitting $15.25. 907,599 shares of the company traded hands, compared to its average volume of 1,699,513. The business has a fifty day simple moving average of $11.82 and a 200 day simple moving average of $11.83. The company has a market capitalization of $1.74 billion, a P/E ratio of 23.82 and a beta of 2.44. LendingClub has a 12 month low of $7.90 and a 12 month high of $18.75.

LendingClub (NYSE:LC - Get Free Report) last issued its earnings results on Tuesday, July 29th. The credit services provider reported $0.33 EPS for the quarter, beating the consensus estimate of $0.15 by $0.18. LendingClub had a net margin of 8.36% and a return on equity of 5.72%. The company had revenue of $248.44 million during the quarter, compared to analysts' expectations of $227.04 million. During the same quarter in the previous year, the company posted $0.13 EPS. The business's revenue for the quarter was up 14.1% compared to the same quarter last year. Equities research analysts predict that LendingClub will post 0.72 EPS for the current fiscal year.

Analyst Ratings Changes

Several analysts recently commented on LC shares. Stephens started coverage on shares of LendingClub in a research report on Thursday, June 12th. They set an "overweight" rating and a $15.00 price objective on the stock. Citigroup began coverage on shares of LendingClub in a research note on Monday, July 7th. They set a "market perform" rating for the company. Keefe, Bruyette & Woods raised their price objective on LendingClub from $14.00 to $16.50 and gave the stock an "outperform" rating in a research report on Wednesday. Wall Street Zen cut shares of LendingClub from a "hold" rating to a "sell" rating in a report on Saturday, July 12th. Finally, Piper Sandler set a $15.50 target price on LendingClub and gave the stock an "overweight" rating in a research note on Wednesday. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $16.57.

LendingClub Company Profile

LendingClub Corporation, operates as a bank holding company, that provides range of financial products and services in the United States. It offers deposit products, including savings accounts, checking accounts, and certificates of deposit. The company also provides loan products, such as consumer loans comprising unsecured personal loans, secured auto refinance loans, and patient and education finance loans; and commercial loans, including small business loans.