Ready to Jump After Recent Trade: LendingClub Corporation (LC)

LendingClub Corporation (NYSE: LC) stock fell -0.89% on Friday to $12.21 against a previous-day closing price of $12.32. With 1.37 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.58 million shares. During the session, the Credit Services company that operates in wider Financial sector, reached to the highest price of $12.77 whereas the lowest price it dropped to was $12.17. The 52-week range on LC shows that it touched its highest point at $49.21 and its lowest point at $11.16 during that stretch. It currently has a 1-year price target of $24.17. Beta for the stock currently stands at 2.01.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LC was down-trending over the past week, with a drop of -4.39%, but this was down by -12.03% over a month. Three-month performance dropped to -1.05% while six-month performance fell -26.45%. The stock lost -54.13% in the past year, while it has lost -49.50% so far this year. A look at the trailing 12-month EPS for LC yields 2.62 with Next year EPS estimates of 1.69. For the next quarter, that number is 0.34. This implies an EPS growth rate of 107.60% for this year and 12.84% for next year. EPS is expected to decline by -8.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 16.00%.

Float and Shares Shorts:

At present, 102.78 million LC shares are outstanding with a float of 100.82 million shares on hand for trading. On Aug 30, 2022, short shares totaled 6.53 million, which was 6.30% higher than short shares on Jul 28, 2022. In addition to Mr. Scott C. Sanborn as the firm’s CEO & Director, Mr. Thomas W. Casey CPA serves as its CFO & Director.

Institutional Ownership:

Through their ownership of 82.58% of LC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 49.58% of LC, in contrast to 32.00% held by mutual funds. Shares owned by individuals account for 2.79%. As the largest shareholder in LC with 11.13% of the stake, The Vanguard Group, Inc. holds 11,532,809 shares worth 11,532,809. A second-largest stockholder of LC, Jackson Square Partners LLC, holds 8,734,138 shares, controlling over 8.43% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in LC, holding 6,218,192 shares or 6.00% stake. With a 2.89% stake in LC, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,998,954 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.50% of LC stock, is the second-largest Mutual Fund holder. It holds 2,591,492 shares valued at 33.87 million. Jackson Square SMID Cap Growth Fu holds 2.22% of the stake in LC, owning 2,300,174 shares worth 30.06 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LC since 6 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With LC analysts setting a high price target of $40.00 and a low target of $16.00, the average target price over the next 12 months is $23.83. Based on these targets, LC could surge 227.6% to reach the target high and rise by 31.04% to reach the target low. Reaching the average price target will result in a growth of 95.17% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. LC will report FY 2022 earnings on 02/21/2023. Analysts have provided yearly estimates in a range of $2.85 being high and $2.66 being low. For LC, this leads to a yearly average estimate of $2.78. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. LendingClub Corporation surprised analysts by $1.33 when it reported $1.73 EPS against a consensus estimate of $0.40. The surprise factor in the prior quarter was $0.14. Based on analyst estimates, the high estimate for the next quarter is $0.38 and the low estimate is $0.30. The average estimate for the next quarter is thus $0.34.

Summary of Insider Activity:

Insiders traded LC stock several times over the past three months with 3 Buys and 3 Sells. In these transactions, 60,663 shares were bought while 22,691 shares were sold. The number of buy transactions has increased to 111 while that of sell transactions has risen to 81 over the past year. The total number of shares bought during that period was 1,096,062 while 593,105 shares were sold.

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