LendingClub (NYSE:LC) Issues Quarterly Earnings Results, Beats Estimates By $0.18 EPS

Key Points

• LendingClub reported an earnings per share (EPS) of $0.33, surpassing analysts' expectations by $0.18, which reflects a strong financial performance for the quarter.
• The company's stock price increased by $0.21 to $13.16 during trading, with a market capitalization of $1.50 billion and a P/E ratio of 29.91.
• Recent analyst ratings vary with reports of a "sell" and "hold" ratings, while the average target price for the stock is set at $16.71, indicating some analysts maintain a positive outlook despite mixed reviews.

LendingClub (NYSE:LC - Get Free Report) released its earnings results on Tuesday. The credit services provider reported $0.33 EPS for the quarter, beating the consensus estimate of $0.15 by $0.18, Zacks reports. LendingClub had a return on equity of 4.04% and a net margin of 6.16%.

LendingClub Stock Performance

NYSE:LC traded up $0.21 during midday trading on Tuesday, reaching $13.16. 4,477,734 shares of the stock traded hands, compared to its average volume of 1,623,341. The company has a fifty day moving average of $11.53 and a 200 day moving average of $11.78. The stock has a market capitalization of $1.50 billion, a P/E ratio of 29.91 and a beta of 2.44. LendingClub has a 12 month low of $7.90 and a 12 month high of $18.75.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the company. Citigroup began coverage on LendingClub in a report on Monday, July 7th. They issued a "market perform" rating for the company. Stephens started coverage on shares of LendingClub in a report on Thursday, June 12th. They issued an "overweight" rating and a $15.00 price target for the company. Keefe, Bruyette & Woods decreased their price target on shares of LendingClub from $15.00 to $14.00 and set an "outperform" rating for the company in a report on Wednesday, April 30th. Wall Street Zen cut shares of LendingClub from a "hold" rating to a "sell" rating in a research report on Saturday, July 12th. Finally, Citizens Jmp initiated coverage on shares of LendingClub in a research report on Monday, July 7th. They set a "market perform" rating on the stock. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and six have given a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $16.71.

Insider Activity

In other news, Director Michael P. Zeisser bought 20,000 shares of the firm's stock in a transaction on Wednesday, April 30th. The shares were bought at an average price of $9.35 per share, for a total transaction of $187,000.00. Following the purchase, the director owned 174,138 shares in the company, valued at approximately $1,628,190.30. The trade was a 12.98% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Scott Sanborn sold 5,250 shares of LendingClub stock in a transaction that occurred on Thursday, July 17th. The shares were sold at an average price of $12.98, for a total transaction of $68,145.00. Following the sale, the chief executive officer owned 1,283,175 shares in the company, valued at approximately $16,655,611.50. The trade was a 0.41% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 31,500 shares of company stock valued at $355,110. 3.31% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. AQR Capital Management LLC raised its position in LendingClub by 165.1% during the 1st quarter. AQR Capital Management LLC now owns 33,788 shares of the credit services provider's stock worth $349,000 after buying an additional 21,045 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in LendingClub by 3.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 300,658 shares of the credit services provider's stock valued at $3,103,000 after acquiring an additional 11,407 shares during the period. Finally, Goldman Sachs Group Inc. boosted its stake in LendingClub by 1.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 852,005 shares of the credit services provider's stock worth $8,793,000 after purchasing an additional 12,019 shares during the last quarter. 74.08% of the stock is owned by hedge funds and other institutional investors.

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.

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