LendingClub (NYSE:LC) Releases Earnings Results

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 quarterly earnings data on Tuesday. The credit services provider reported $0.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.15 by $0.18, Zacks reports. 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 the consensus estimate of $227.04 million. During the same period in the previous year, the firm earned $0.13 earnings per share. LendingClub's revenue for the quarter was up 14.1% on a year-over-year basis.

LendingClub Price Performance

Shares of LC stock remained flat at $15.59 on Friday. 4,147,162 shares of the stock traded hands, compared to its average volume of 2,212,391. The stock has a market capitalization of $1.78 billion, a price-to-earnings ratio of 24.36 and a beta of 2.45. The business has a 50-day simple moving average of $11.93 and a 200 day simple moving average of $11.83. LendingClub has a fifty-two week low of $7.90 and a fifty-two week high of $18.75.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Keefe, Bruyette & Woods boosted their price objective on shares of LendingClub from $14.00 to $16.50 and gave the stock an "outperform" rating in a research note on Wednesday. Citigroup assumed coverage on shares of LendingClub in a research note on Monday, July 7th. They set a "market perform" rating for the company. Piper Sandler set a $15.50 price objective on shares of LendingClub and gave the stock an "overweight" rating in a research note on Wednesday. Citizens Jmp assumed coverage on shares of LendingClub in a research note on Monday, July 7th. They set a "market perform" rating for the company. Finally, Wall Street Zen upgraded shares of LendingClub from a "sell" rating to a "hold" rating in a research note on Saturday. Four investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $16.57.

Insider Buying and Selling at LendingClub

In other LendingClub news, CFO Andrew Labenne sold 17,955 shares of the stock in a transaction on Wednesday, July 30th. The shares were sold at an average price of $16.65, for a total transaction of $298,950.75. Following the transaction, the chief financial officer directly owned 178,111 shares in the company, valued at $2,965,548.15. This represents a 9.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 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 transaction of $68,145.00. Following the transaction, the chief executive officer owned 1,283,175 shares in the company, valued at $16,655,611.50. This trade represents a 0.41% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 44,205 shares of company stock valued at $601,561 over the last 90 days. Insiders own 3.19% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. AQR Capital Management LLC raised its holdings in shares of LendingClub by 165.1% during the first quarter. AQR Capital Management LLC now owns 33,788 shares of the credit services provider's stock worth $349,000 after purchasing an additional 21,045 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of LendingClub by 3.9% during the first 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 worth $3,103,000 after purchasing an additional 11,407 shares during the period. Finally, Goldman Sachs Group Inc. raised its holdings in shares of LendingClub by 1.4% during the first 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 period. 74.08% of the stock is currently owned by 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.