LendingClub (NYSE:LC) Shares Gap Up After Earnings Beat

Key Points

• LendingClub's shares gapped up significantly, opening at $16.70 after reporting quarterly earnings of $0.33 per share, surpassing analysts' estimates of $0.15.
• The company's revenue for the quarter reached $248.44 million, which was a 14.1% increase year-over-year and above the consensus estimate of $227.04 million.
• LendingClub's stock received several analysts' ratings, maintaining an average rating of "Moderate Buy" with a target price estimate of $16.57.

LendingClub Corporation (NYSE:LC - Get Free Report) shares gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $13.11, but opened at $16.70. LendingClub shares last traded at $16.00, with a volume of 3,832,722 shares traded.

The credit services provider reported $0.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $0.18. LendingClub had a return on equity of 5.66% and a net margin of 8.36%. The firm had revenue of $248.44 million for the quarter, compared to analysts' expectations of $227.04 million. During the same quarter in the prior year, the firm posted $0.13 earnings per share. LendingClub's revenue for the quarter was up 14.1% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

LC has been the subject of several recent research reports. Wall Street Zen raised LendingClub from a "sell" rating to a "hold" rating in a report on Saturday. Keefe, Bruyette & Woods increased their price objective on LendingClub from $14.00 to $16.50 and gave the stock an "outperform" rating in a report on Wednesday, July 30th. Citizens Jmp initiated coverage on LendingClub in a research report on Monday, July 7th. They issued a "market perform" rating for the company. Citigroup initiated coverage on LendingClub in a research report on Monday, July 7th. They issued a "market perform" rating for the company. Finally, Piper Sandler set a $15.50 target price on LendingClub and gave the stock an "overweight" rating in a research report on Wednesday, July 30th. Four equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $16.57.

Insider Activity at LendingClub

In other news, CEO Scott Sanborn sold 5,250 shares of the firm's 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 completion of the sale, the chief executive officer owned 1,283,175 shares of the company's stock, valued at approximately $16,655,611.50. This trade represents a 0.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Andrew Labenne sold 17,955 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the chief financial officer directly owned 178,111 shares of the company's stock, valued at approximately $2,965,548.15. This represents a 9.16% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 44,205 shares of company stock valued at $601,561. Company insiders own 3.31% of the company's stock.

Institutional Investors Weigh In On LendingClub

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Bank of America Corp DE grew its position in shares of LendingClub by 111.5% during the 4th quarter. Bank of America Corp DE now owns 402,033 shares of the credit services provider's stock worth $6,509,000 after purchasing an additional 211,979 shares in the last quarter. Wealth Enhancement Advisory Services LLC acquired a new position in shares of LendingClub during the 1st quarter worth approximately $161,000. Invesco Ltd. grew its position in shares of LendingClub by 87.1% during the 4th quarter. Invesco Ltd. now owns 637,458 shares of the credit services provider's stock worth $10,320,000 after purchasing an additional 296,813 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of LendingClub by 62.3% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 289,251 shares of the credit services provider's stock worth $4,683,000 after purchasing an additional 111,031 shares in the last quarter. Finally, Copperwynd Financial LLC acquired a new position in shares of LendingClub during the 1st quarter worth approximately $1,079,000. 74.08% of the stock is owned by institutional investors.

LendingClub Stock Performance

The stock's 50-day simple moving average is $11.93 and its 200-day simple moving average is $11.76. The stock has a market cap of $1.78 billion, a price-to-earnings ratio of 24.36 and a beta of 2.46.

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.