LendingClub (NYSE:LC) Hits New 1-Year High on Earnings Beat

Key Points

• LendingClub shares hit a new 52-week high of $19.88 after reporting a quarterly earnings per share of $0.37, beating the analysts' expectations of $0.30.
• Analysts have varied ratings for LendingClub, with eight giving it a Buy rating, while Zacks Research downgraded it to a Hold.
• Insider sales accounted for a significant volume, with CEO Scott Sanborn selling 30,000 shares, representing a 2.31% decrease in his holdings.

LendingClub Corporation (NYSE:LC - Get Free Report) shares reached a new 52-week high on Thursday following a stronger than expected earnings report. The company traded as high as $19.88 and last traded at $18.74, with a volume of 2018576 shares trading hands. The stock had previously closed at $16.52.

The credit services provider reported $0.37 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.30 by $0.07. The firm had revenue of $266.23 million during the quarter, compared to analyst estimates of $256.27 million. LendingClub had a net margin of 8.36% and a return on equity of 5.66%. The business's revenue was up 31.8% on a year-over-year basis. During the same period in the previous year, the firm earned $0.13 earnings per share.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. Zacks Research downgraded LendingClub from a "strong-buy" rating to a "hold" rating in a report on Monday, September 29th. Weiss Ratings restated a "hold (c)" rating on shares of LendingClub in a research note on Wednesday, October 8th. BTIG Research upped their target price on LendingClub from $16.00 to $18.00 and gave the company a "buy" rating in a research report on Thursday. Keefe, Bruyette & Woods upped their price objective on LendingClub from $14.00 to $16.50 and gave the stock an "outperform" rating in a research report on Wednesday, July 30th. Finally, Citizens Jmp started coverage on LendingClub in a research note on Monday, July 7th. They set a "market perform" rating for the company. Eight analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $17.75.

Insider Activity at LendingClub

In other LendingClub news, CEO Scott Sanborn sold 30,000 shares of the stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $16.65, for a total value of $499,500.00. Following the sale, the chief executive officer owned 1,270,070 shares of the company's stock, valued at $21,146,665.50. This trade represents a 2.31% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Erin Selleck sold 2,390 shares of the stock in a transaction dated Friday, September 5th. The shares were sold at an average price of $16.82, for a total value of $40,199.80. Following the completion of the sale, the director directly owned 73,987 shares in the company, valued at $1,244,461.34. This represents a 3.13% decrease in their position. The disclosure for this sale can be found here. Insiders sold 101,248 shares of company stock worth $1,706,038 in the last three months. 3.19% of the stock is owned by company insiders.

Institutional Investors Weigh In On LendingClub

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Senvest Management LLC increased its position in LendingClub by 23.5% during the second quarter. Senvest Management LLC now owns 5,881,290 shares of the credit services provider's stock worth $70,752,000 after buying an additional 1,117,241 shares during the period. Wellington Management Group LLP increased its holdings in shares of LendingClub by 36.0% in the first quarter. Wellington Management Group LLP now owns 5,167,642 shares of the credit services provider's stock valued at $53,330,000 after purchasing an additional 1,368,057 shares during the period. Driehaus Capital Management LLC increased its holdings in shares of LendingClub by 8.6% in the first quarter. Driehaus Capital Management LLC now owns 3,897,322 shares of the credit services provider's stock valued at $40,220,000 after purchasing an additional 308,523 shares during the period. Geode Capital Management LLC increased its holdings in shares of LendingClub by 1.3% in the second quarter. Geode Capital Management LLC now owns 2,699,141 shares of the credit services provider's stock valued at $32,476,000 after purchasing an additional 34,221 shares during the period. Finally, Assenagon Asset Management S.A. boosted its stake in shares of LendingClub by 184.1% in the third quarter. Assenagon Asset Management S.A. now owns 2,121,802 shares of the credit services provider's stock valued at $32,230,000 after buying an additional 1,375,002 shares in the last quarter. Institutional investors and hedge funds own 74.08% of the company's stock.

LendingClub Price Performance

The stock has a market capitalization of $2.13 billion, a PE ratio of 29.10 and a beta of 2.48. The stock has a 50 day moving average of $16.24 and a two-hundred day moving average of $13.14.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.