LendingClub (NYSE:LC) Shares Gap Up Following Better-Than-Expected Earnings

LendingClub Co. (NYSE:LC)’s stock price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $7.52, but opened at $8.40. LendingClub shares last traded at $8.81, with a volume of 473,523 shares.

The credit services provider reported $0.11 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.03 by $0.08. LendingClub had a return on equity of 3.21% and a net margin of 4.50%. The company had revenue of $180.69 million during the quarter, compared to analysts’ expectations of $174.52 million. During the same quarter in the previous year, the business earned $0.13 EPS.

Analyst Upgrades and Downgrades

LC has been the subject of several research reports. Wedbush reiterated an “outperform” rating and issued a $11.00 target price on shares of LendingClub in a report on Wednesday. StockNews.com lowered LendingClub from a “hold” rating to a “sell” rating in a research report on Friday, March 22nd. Piper Sandler reissued an “overweight” rating and issued a $10.00 price target (up from $9.50) on shares of LendingClub in a research report on Wednesday. Finally, Keefe, Bruyette & Woods boosted their price target on LendingClub from $9.50 to $10.00 and gave the stock a “market perform” rating in a research report on Wednesday. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and four have issued a buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $11.42.

Hedge Funds Weigh In On LendingClub

Hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. lifted its position in LendingClub by 3.1% during the fourth quarter. Vanguard Group Inc. now owns 11,270,308 shares of the credit services provider’s stock worth $98,502,000 after buying an additional 336,827 shares in the last quarter. Wellington Management Group LLP raised its position in LendingClub by 176.1% in the fourth quarter. Wellington Management Group LLP now owns 1,344,295 shares of the credit services provider’s stock valued at $11,749,000 after purchasing an additional 857,371 shares during the period. Sierra Summit Advisors LLC purchased a new stake in LendingClub in the fourth quarter valued at $337,000. G2 Investment Partners Management LLC purchased a new stake in LendingClub in the fourth quarter valued at $1,758,000. Finally, K2 Principal Fund L.P. purchased a new stake in LendingClub in the fourth quarter valued at $1,017,000. Hedge funds and other institutional investors own 74.08% of the company’s stock.

LendingClub Price Performance

The company has a quick ratio of 0.83, a current ratio of 0.89 and a debt-to-equity ratio of 0.01. The company has a market cap of $956.74 million, a PE ratio of 24.17 and a beta of 1.98. The stock has a 50-day simple moving average of $8.16 and a 200 day simple moving average of $7.60.

About LendingClub

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.