LendingClub Corporation (NYSE: LC) stock fell -5.71% on Tuesday to $10.24 against a previous-day closing price of $10.86. With 1.46 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.71 million shares. During the session, the Credit Services company that operates in wider Financial sector, reached to the highest price of $10.80 whereas the lowest price it dropped to was $10.22. The 52-week range on LC shows that it touched its highest point at $23.84 and its lowest point at $8.23 during that stretch. It currently has a 1-year price target of $15.57. Beta for the stock currently stands at 1.99.
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 up-trending over the past week, with a rise of 1.39%, but this was up by 17.57% over a month. Three-month performance dropped to -9.62% while six-month performance fell -30.67%. The stock lost -51.03% in the past year, while it has gained 16.36% so far this year. A look at the trailing 12-month EPS for LC yields 2.77 with Next year EPS estimates of 1.25. For the next quarter, that number is 0.21. This implies an EPS growth rate of 107.60% for this year and -11.12% 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, 104.22 million LC shares are outstanding with a float of 101.99 million shares on hand for trading. On Oct 13, 2022, short shares totaled 6.44 million, which was 6.21% higher than short shares on Sep 14, 2022. In addition to Mr. Scott C. Sanborn as the firm’s CEO & Director, Mr. Brandon Pace serves as its Chief Admin. Officer & Corp. Sec.
Through their ownership of 82.57% of LC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.63% of LC, in contrast to 34.40% held by mutual funds. Shares owned by individuals account for 3.02%. As the largest shareholder in LC with 12.29% of the stake, The Vanguard Group, Inc. holds 12,913,385 shares worth 12,913,385. A second-largest stockholder of LC, Jackson Square Partners LLC, holds 8,563,412 shares, controlling over 8.15% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in LC, holding 6,154,146 shares or 5.86% stake. With a 3.13% stake in LC, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 3,287,130 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.58% of LC stock, is the second-largest Mutual Fund holder. It holds 2,707,827 shares valued at 23.83 million. iShares Russell 2000 ETF holds 2.21% of the stake in LC, owning 2,324,046 shares worth 20.45 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LC since 7 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 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 $20.00 and a low target of $9.00, the average target price over the next 12 months is $15.57. Based on these targets, LC could surge 95.31% to reach the target high and fall by -12.11% to reach the target low. Reaching the average price target will result in a growth of 52.05% 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 02/20/2024. Analysts have provided yearly estimates in a range of $2.73 being high and $2.69 being low. For LC, this leads to a yearly average estimate of $2.72. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. LendingClub Corporation surprised analysts by $0.08 when it reported $0.41 EPS against a consensus estimate of $0.33. The surprise factor in the prior quarter was $1.33. Based on analyst estimates, the high estimate for the next quarter is $0.21 and the low estimate is $0.17. The average estimate for the next quarter is thus $0.19.
Summary of Insider Activity:
Insiders traded LC stock several times over the past three months with 33 Buys and 10 Sells. In these transactions, 536,947 shares were bought while 273,287 shares were sold. The number of buy transactions has increased to 140 while that of sell transactions has risen to 61 over the past year. The total number of shares bought during that period was 1,863,976 while 1,000,789 shares were sold.