Lendingclub (NASDAQ:HAPN) Shares Up 10% Following Earnings Beat

Key Points

• LendingClub shares rose 10% after the company reported quarterly EPS of $0.50, beating analyst expectations of $0.47. Revenue totaled $279.09 million, down 1.1% year over year.
• Analyst sentiment remains positive overall, with three Buy ratings and one Hold rating; the average price target is $23.33, though Piper Sandler lowered its target to $20 while Citizens JMP raised its target to $25.
• Company insiders sold 137,800 shares worth approximately $2.62 million during the past quarter, including sales by the CEO and general counsel, mostly under pre-arranged trading plans.

Shares of Lendingclub Corp (NASDAQ:HAPN - Get Free Report) traded up 10% during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $15.68 and last traded at $15.7770. 306,633 shares traded hands during trading, a decline of 85% from the average daily volume of 2,035,610 shares. The stock had previously closed at $14.34.

The company reported $0.50 EPS for the quarter, beating the consensus estimate of $0.47 by $0.03. The business had revenue of $279.09 million for the quarter. Lendingclub had a net margin of 18.67% and a return on equity of 12.92%. The firm's quarterly revenue was down 1.1% on a year-over-year basis.

Analysts Set New Price Targets

A number of research firms recently weighed in on HAPN. Citizens Jmp upped their target price on shares of Lendingclub from $23.00 to $25.00 and gave the stock a "market outperform" rating in a report on Tuesday, July 28th. Piper Sandler dropped their price objective on shares of Lendingclub from $25.00 to $20.00 and set an "overweight" rating on the stock in a report on Thursday. Weiss Ratings reissued a "hold (c+)" rating on shares of Lendingclub in a report on Tuesday, September 22nd. Finally, BTIG Research reissued a "buy" rating and set a $25.00 price objective on shares of Lendingclub in a research note on Tuesday, July 28th. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $23.33.

Insiders Place Their Bets

In other news, General Counsel Jordan Cheng sold 2,800 shares of the stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $17.56, for a total transaction of $49,168.00. Following the sale, the general counsel owned 106,413 shares in the company, valued at $1,868,612.28. This represents a 2.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Scott Sanborn sold 28,750 shares of the firm's stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $18.25, for a total transaction of $524,687.50. Following the completion of the sale, the chief executive officer owned 1,462,774 shares in the company, valued at $26,695,625.50. This represents a 1.93% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 137,800 shares of company stock worth $2,618,356. 3.31% of the stock is currently owned by company insiders.

Lendingclub Price Performance

The firm has a market cap of $1.82 billion, a price-to-earnings ratio of 9.49 and a beta of 1.88. The business has a 50 day moving average of $16.00.

Lendingclub Company Profile

LendingClub Corporation is a U.S.-based financial technology company that operates a digital banking and lending platform. The company connects consumers seeking credit with funding sources and provides personal loans, debt-consolidation loans, auto-refinancing loans and other consumer credit products through its online platform.

Following its acquisition of Radius Bancorp in 2020, LendingClub also operates as a bank holding company through LendingClub Bank, National Association. Its banking operations support consumer and commercial lending, as well as deposit products designed to provide funding for loans and other banking activities.

Founded in 2006, LendingClub primarily serves customers in the United States.

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