LendingClub (NYSE:LC) Downgraded by Zacks Research to "Hold"

Key Points

• LendingClub has been downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating, reflecting a more cautious outlook from analysts.
• CFO Andrew Labenne and CEO Scott Sanborn both sold significant amounts of company stock recently, indicating possible insider sentiment regarding the stock's performance.
• The company reported earnings of $0.33 per share for the last quarter, surpassing analyst expectations, with revenues increasing by 14.1% year-over-year.

LendingClub (NYSE:LC - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

LC has been the subject of several other reports. Keefe, Bruyette & Woods upped their target price on LendingClub from $14.00 to $16.50 and gave the company an "outperform" rating in a report on Wednesday, July 30th. Piper Sandler set a $15.50 target price on LendingClub and gave the company an "overweight" rating in a report on Wednesday, July 30th. Stephens initiated coverage on LendingClub in a report on Thursday, June 12th. They issued an "overweight" rating and a $15.00 price objective for the company. Wall Street Zen raised LendingClub from a "sell" rating to a "hold" rating in a report on Saturday, August 2nd. Finally, Citigroup initiated coverage on LendingClub in a report on Monday, July 7th. They issued a "market perform" rating for the company. Six equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $16.57.

LendingClub Trading Down 5.6%

NYSE:LC opened at $15.20 on Monday. The firm has a market capitalization of $1.74 billion, a PE ratio of 23.75 and a beta of 2.53. The stock has a 50 day moving average of $15.97 and a 200-day moving average of $12.60. LendingClub has a 52 week low of $7.90 and a 52 week high of $18.75.

LendingClub (NYSE:LC - Get Free Report) last posted 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. The company had revenue of $248.44 million during the quarter, compared to analyst estimates of $227.04 million. LendingClub had a return on equity of 5.66% and a net margin of 8.36%.The business's revenue was up 14.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.13 earnings per share. As a group, analysts predict that LendingClub will post 0.72 EPS for the current fiscal year.

Insiders Place Their Bets

In other LendingClub news, CFO Andrew Labenne sold 20,903 shares of the company's stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $17.04, for a total value of $356,187.12. Following the completion of the sale, the chief financial officer directly owned 181,750 shares in the company, valued at $3,097,020. This represents a 10.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Scott Sanborn sold 30,000 shares of the company's stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $17.04, for a total value of $511,200.00. Following the completion of the sale, the chief executive officer owned 1,240,070 shares of the company's stock, valued at $21,130,792.80. This trade represents a 2.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 111,748 shares of company stock worth $1,840,123 over the last ninety days. Company insiders own 3.31% of the company's stock.

Institutional Investors Weigh In On LendingClub

Institutional investors have recently added to or reduced their stakes in the company. Quarry LP lifted its position in LendingClub by 1,427.2% in the first quarter. Quarry LP now owns 2,810 shares of the credit services provider's stock worth $29,000 after purchasing an additional 2,626 shares during the period. BI Asset Management Fondsmaeglerselskab A S acquired a new stake in LendingClub in the first quarter worth approximately $35,000. Headlands Technologies LLC acquired a new stake in shares of LendingClub during the 2nd quarter valued at $53,000. KBC Group NV acquired a new stake in shares of LendingClub during the 1st quarter valued at $67,000. Finally, Asset Management One Co. Ltd. lifted its position in shares of LendingClub by 95.4% during the 1st quarter. Asset Management One Co. Ltd. now owns 9,526 shares of the credit services provider's stock valued at $98,000 after acquiring an additional 4,651 shares during the last quarter. 74.08% of the stock is currently owned by institutional investors and hedge funds.

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.

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