LendingClub (NYSE:LC) Shares Down 9.1% – Here’s Why

LendingClub Corporation (NYSE:LC)’s share price dropped 9.1% during mid-day trading on Monday . The stock traded as low as $14.67 and last traded at $14.7810. Approximately 1,007,433 shares changed hands during mid-day trading, a decline of 57% from the average daily volume of 2,350,567 shares. The stock had previously closed at $16.26.

Analysts Set New Price Targets

Several brokerages recently commented on LC. Keefe, Bruyette & Woods upped their price target on shares of LendingClub from $20.00 to $22.00 and gave the company an “outperform” rating in a report on Friday, November 7th. Wall Street Zen cut LendingClub from a “buy” rating to a “hold” rating in a research note on Sunday, February 15th. Piper Sandler reiterated an “overweight” rating and issued a $23.00 price target on shares of LendingClub in a report on Thursday, January 29th. Weiss Ratings reissued a “hold (c)” rating on shares of LendingClub in a research note on Monday, December 29th. Finally, Janney Montgomery Scott upped their price objective on LendingClub from $17.00 to $20.00 and gave the company a “neutral” rating in a research report on Thursday, November 6th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $22.00.

LendingClub Stock Down 9.3%

The stock has a market cap of $1.70 billion, a P/E ratio of 12.83 and a beta of 2.08. The company’s 50 day moving average price is $18.70 and its two-hundred day moving average price is $17.53.

LendingClub (NYSE:LC) last announced its quarterly earnings data on Wednesday, January 28th. The credit services provider reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.01. The company had revenue of $266.47 million for the quarter, compared to analysts’ expectations of $262.88 million. LendingClub had a return on equity of 9.47% and a net margin of 13.58%.LendingClub’s revenue was up 22.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.08 earnings per share. LendingClub has set its FY 2026 guidance at 1.650-1.800 EPS and its Q1 2026 guidance at 0.340-0.390 EPS. As a group, equities research analysts forecast that LendingClub Corporation will post 0.72 earnings per share for the current year.

LendingClub declared that its Board of Directors has approved a stock repurchase plan on Wednesday, November 5th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the credit services provider to reacquire up to 4.9% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other LendingClub news, Director Erin Selleck sold 2,390 shares of the stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $19.47, for a total transaction of $46,533.30. Following the transaction, the director directly owned 76,377 shares in the company, valued at $1,487,060.19. This represents a 3.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 3.31% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On LendingClub

Several hedge funds have recently modified their holdings of the business. AQR Capital Management LLC increased its holdings in LendingClub by 165.1% during the first quarter. AQR Capital Management LLC now owns 33,788 shares of the credit services provider’s stock valued at $349,000 after buying an additional 21,045 shares during the period. Goldman Sachs Group Inc. boosted its position in LendingClub by 1.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 852,005 shares of the credit services provider’s stock valued at $8,793,000 after acquiring an additional 12,019 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of LendingClub by 3.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 300,658 shares of the credit services provider’s stock valued at $3,103,000 after acquiring an additional 11,407 shares during the period. Asset Management One Co. Ltd. increased its holdings in shares of LendingClub by 7.4% in the 2nd quarter. Asset Management One Co. Ltd. now owns 10,232 shares of the credit services provider’s stock valued at $123,000 after acquiring an additional 706 shares during the period. Finally, AlphaQuest LLC raised its position in shares of LendingClub by 48.9% in the 2nd quarter. AlphaQuest LLC now owns 60,831 shares of the credit services provider’s stock worth $732,000 after acquiring an additional 19,967 shares in the last quarter. Hedge funds and other institutional investors 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.