LendingClub Target of Unusually Large Options Trading (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 recipient of some unusual options trading on Wednesday. Stock investors purchased 6,991 call options on the company. Thisisanincreaseof671% compared to the typical volume of 907 call options.

LendingClub Price Performance

Shares of NYSE:LC remained flat at $15.59 during midday trading on Friday. The company had a trading volume of 4,147,162 shares, compared to its average volume of 2,212,391. LendingClub has a twelve month low of $7.90 and a twelve month high of $18.75. The stock's 50-day moving average is $11.93 and its two-hundred day moving average is $11.80. The company has a market cap of $1.78 billion, a P/E ratio of 24.36 and a beta of 2.45.

LendingClub (NYSE:LC - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The credit services provider reported $0.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.15 by $0.18. LendingClub had a return on equity of 5.72% and a net margin of 8.36%. The business had revenue of $248.44 million during the quarter, compared to analyst estimates of $227.04 million. During the same period last year, the company earned $0.13 earnings per share. LendingClub's quarterly revenue was up 14.1% compared to the same quarter last year. On average, analysts anticipate that LendingClub will post 0.72 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Andrew Labenne sold 17,955 shares of the stock in a transaction on Wednesday, July 30th. The stock was sold at an average price of $16.65, for a total transaction of $298,950.75. Following the completion of the sale, the chief financial officer owned 178,111 shares in the company, valued at approximately $2,965,548.15. This represents a 9.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Scott Sanborn sold 5,250 shares of the stock in a transaction on Thursday, July 17th. The shares were sold at an average price of $12.98, for a total value of $68,145.00. Following the sale, the chief executive officer owned 1,283,175 shares of the company's stock, valued at $16,655,611.50. This trade represents a 0.41% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 44,205 shares of company stock valued at $601,561. 3.19% of the stock is currently owned by corporate insiders.

Institutional Trading of LendingClub

Several hedge funds and other institutional investors have recently modified their holdings of the company. Quarry LP increased its position in LendingClub by 1,427.2% during the first quarter. Quarry LP now owns 2,810 shares of the credit services provider's stock worth $29,000 after buying an additional 2,626 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S acquired a new position in LendingClub during the first quarter worth $35,000. Comerica Bank acquired a new position in LendingClub during the fourth quarter worth $37,000. Sterling Capital Management LLC increased its position in LendingClub by 818.6% during the fourth quarter. Sterling Capital Management LLC now owns 3,500 shares of the credit services provider's stock worth $57,000 after buying an additional 3,119 shares during the last quarter. Finally, National Bank of Canada FI increased its position in LendingClub by 150.6% during the fourth quarter. National Bank of Canada FI now owns 4,074 shares of the credit services provider's stock worth $66,000 after buying an additional 2,448 shares during the last quarter. 74.08% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of brokerages have recently commented on LC. Citizens Jmp began coverage on LendingClub in a research report on Monday, July 7th. They set a "market perform" rating for the company. Citigroup assumed coverage on LendingClub in a research report on Monday, July 7th. They set a "market perform" rating for the company. Keefe, Bruyette & Woods increased their target price on LendingClub from $14.00 to $16.50 and gave the company an "outperform" rating in a report on Wednesday. Stephens assumed coverage on LendingClub in a report on Thursday, June 12th. They issued an "overweight" rating and a $15.00 target price for the company. Finally, Piper Sandler set a $15.50 target price on LendingClub and gave the company an "overweight" rating in a report on Wednesday. Four analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. Based on data from MarketBeat.com, LendingClub has an average rating of "Moderate Buy" and a consensus price target of $16.57.

About LendingClub

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.