Short Interest in LendingClub Corporation (NYSE:LC) Decreases By 23.8%

LendingClub Corporation (NYSE:LC) was the target of a significant decline in short interest during the month of December. As of December 15th, there was short interest totaling 3,759,392 shares, a decline of 23.8% from the November 30th total of 4,930,505 shares. Currently, 3.4% of the company’s shares are sold short. Based on an average daily trading volume, of 1,713,116 shares, the short-interest ratio is presently 2.2 days. Based on an average daily trading volume, of 1,713,116 shares, the short-interest ratio is presently 2.2 days. Currently, 3.4% of the company’s shares are sold short.

LendingClub Stock Performance

Shares of NYSE:LC opened at $18.90 on Thursday. LendingClub has a 52-week low of $7.90 and a 52-week high of $20.94. The company has a market capitalization of $2.18 billion, a P/E ratio of 21.48 and a beta of 2.14. The company has a 50-day simple moving average of $18.35 and a 200 day simple moving average of $16.04.

LendingClub (NYSE:LC) last released its quarterly earnings data on Wednesday, October 22nd. The credit services provider reported $0.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.30 by $0.07. LendingClub had a return on equity of 7.68% and a net margin of 10.94%.The firm had revenue of $107.79 million for the quarter, compared to analyst estimates of $256.27 million. During the same quarter in the prior year, the company earned $0.13 earnings per share. The business’s revenue for the quarter was up 31.8% compared to the same quarter last year. As a group, equities analysts forecast that LendingClub will post 0.72 earnings per share for the current year.

LendingClub announced that its board has initiated a share repurchase program on Wednesday, November 5th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the credit services provider to reacquire up to 4.9% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board believes its stock is undervalued.

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. JPMorgan Chase & Co. upped their price target on shares of LendingClub from $22.00 to $25.00 and gave the company an “overweight” rating in a report on Thursday, December 4th. Keefe, Bruyette & Woods boosted their price objective on shares of LendingClub from $20.00 to $22.00 and gave the company an “outperform” rating in a research report on Friday, November 7th. Piper Sandler reiterated an “overweight” rating and set a $20.00 target price (up previously from $18.00) on shares of LendingClub in a report on Thursday, October 23rd. Janney Montgomery Scott lifted their price target on LendingClub from $17.00 to $20.00 and gave the company a “neutral” rating in a research note on Thursday, November 6th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of LendingClub in a research report on Monday. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $21.57.

Insider Activity at LendingClub

In related news, Director Erin Selleck sold 2,390 shares of the business’s stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $19.47, for a total transaction of $46,533.30. Following the completion of the transaction, the director owned 76,377 shares in the company, valued at approximately $1,487,060.19. The trade was a 3.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Scott Sanborn sold 30,000 shares of the stock in a transaction on Thursday, October 23rd. The stock was sold at an average price of $19.29, for a total transaction of $578,700.00. Following the completion of the sale, the chief executive officer owned 1,210,070 shares in the company, valued at approximately $23,342,250.30. This trade represents a 2.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 3.19% of the company’s stock.

Hedge Funds Weigh In On LendingClub

Several institutional investors and hedge funds have recently made changes to their positions in LC. Aster Capital Management DIFC Ltd bought a new position in LendingClub in the 3rd quarter valued at about $26,000. Quarry LP increased 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 acquiring an additional 2,626 shares during the last quarter. Headlands Technologies LLC bought a new stake in LendingClub during the second quarter worth $53,000. Advisory Services Network LLC bought a new position in shares of LendingClub in the 3rd quarter valued at $59,000. Finally, Jones Financial Companies Lllp raised its holdings in shares of LendingClub by 46.7% during the 3rd quarter. Jones Financial Companies Lllp now owns 4,051 shares of the credit services provider’s stock worth $67,000 after buying an additional 1,290 shares in the last quarter. Institutional investors and hedge funds own 74.08% of the company’s stock.

About LendingClub

LendingClub Corporation operates an online lending marketplace that connects borrowers seeking personal and small business credit with individual and institutional investors. The platform leverages technology to streamline the loan application and underwriting process, offering unsecured personal loans, auto refinancing, and small business loans. In addition to lending products, LendingClub provides high-yield savings accounts and certificates of deposit through its banking charter, following its acquisition of Radius Bank in 2021.

Founded in 2006 by Renaud Laplanche, LendingClub pioneered peer-to-peer lending in the United States, helping to democratize access to credit and investment opportunities.