LendingClub (NYSE:LC) Shares Gap Up on 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)'s share price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. 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 changing hands.

The credit services provider reported $0.33 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.15 by $0.18. LendingClub had a net margin of 8.36% and a return on equity of 5.72%. The firm had revenue of $248.44 million for the quarter, compared to analysts' expectations of $227.04 million. During the same quarter last year, the company earned $0.13 EPS. The firm's revenue for the quarter was up 14.1% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the stock. Piper Sandler set a $15.50 price target on shares of LendingClub and gave the stock an "overweight" rating in a research note on Wednesday. Keefe, Bruyette & Woods increased their price objective on LendingClub from $14.00 to $16.50 and gave the stock an "outperform" rating in a research report on Wednesday. Stephens began coverage on LendingClub in a research report on Thursday, June 12th. They issued an "overweight" rating and a $15.00 price target for the company. Citigroup started coverage on LendingClub in a research report on Monday, July 7th. They set a "market perform" rating for the company. Finally, Citizens Jmp initiated coverage on LendingClub in a research note on Monday, July 7th. They issued a "market perform" rating on the stock. One research analyst has rated the stock with a sell rating, three have given a hold rating and six have assigned a buy rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $16.57.

Insider Buying and Selling at LendingClub

In other news, CEO Scott Sanborn sold 5,250 shares of LendingClub stock in a transaction that occurred on Thursday, July 17th. The stock was 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 of the company's stock, valued at approximately $16,655,611.50. This trade represents a 0.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last quarter, insiders sold 26,250 shares of company stock worth $302,610. 3.19% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On LendingClub

Several institutional investors have recently bought and sold shares of the business. Comerica Bank bought a new stake in shares of LendingClub in the fourth quarter valued at about $37,000. Quarry LP raised its stake in LendingClub by 1,427.2% in the first quarter. Quarry LP now owns 2,810 shares of the credit services provider's stock valued at $29,000 after buying an additional 2,626 shares during the period. BI Asset Management Fondsmaeglerselskab A S bought a new stake in LendingClub in the first quarter valued at approximately $35,000. Sterling Capital Management LLC raised its stake in LendingClub by 818.6% in the fourth quarter. Sterling Capital Management LLC now owns 3,500 shares of the credit services provider's stock valued at $57,000 after buying an additional 3,119 shares during the period. Finally, National Bank of Canada FI increased its stake in shares of LendingClub by 150.6% during the fourth quarter. National Bank of Canada FI now owns 4,074 shares of the credit services provider's stock worth $66,000 after purchasing an additional 2,448 shares during the period. Institutional investors own 74.08% of the company's stock.

LendingClub Stock Down 2.6%

The company has a market cap of $1.73 billion, a P/E ratio of 23.73 and a beta of 2.44. The stock has a 50 day moving average price of $11.82 and a two-hundred day moving average price of $11.83.

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.