Guggenheim Downgrades LendingClub (LC) to Neutral

LendingClub (NYSE:LC) was downgraded by equities research analysts at Guggenheim from a “buy” rating to a “neutral” rating in a report issued on Friday, Marketbeat Ratings reports. They presently have a $7.00 price target on the credit services provider’s stock. Guggenheim’s price target would indicate a potential upside of 108.96% from the stock’s current price.

Several other equities research analysts also recently commented on LC. Credit Suisse Group decreased their price objective on LendingClub from $5.60 to $5.00 and set a “neutral” rating for the company in a report on Wednesday. Citigroup decreased their price target on LendingClub from $4.25 to $4.00 and set a “neutral” rating for the company in a report on Thursday. Oppenheimer decreased their price target on LendingClub from $7.50 to $6.25 and set an “outperform” rating for the company in a report on Wednesday, November 8th. Stifel Nicolaus decreased their price target on LendingClub from $5.00 to $4.50 and set a “hold” rating for the company in a report on Friday, December 8th. Finally, Canaccord Genuity reiterated a “hold” rating and set a $7.00 price target on shares of LendingClub in a report on Monday, November 6th. Three analysts have rated the stock with a sell rating, eight have assigned a hold rating and nine have given a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average target price of $6.24.

Shares of LendingClub (NYSE:LC) opened at $3.35 on Friday. The company has a market capitalization of $1,398.89, a P/E ratio of -9.05 and a beta of 1.38. LendingClub has a 1-year low of $3.29 and a 1-year high of $6.56. The company has a current ratio of 18.02, a quick ratio of 16.90 and a debt-to-equity ratio of 3.52.

LendingClub (NYSE:LC) last released its quarterly earnings data on Tuesday, February 20th. The credit services provider reported $0.01 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.02 by ($0.01). The firm had revenue of $156.50 million for the quarter, compared to the consensus estimate of $157.55 million. LendingClub had a negative net margin of 26.77% and a negative return on equity of 7.00%. The company’s revenue was up 19.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.02) EPS. sell-side analysts expect that LendingClub will post -0.05 EPS for the current year.

In other LendingClub news, major shareholder Tian Qiao Chen acquired 21,927,175 shares of LendingClub stock in a transaction on Tuesday, December 12th. The stock was purchased at an average price of $3.90 per share, for a total transaction of $85,515,982.50. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director John J. Mack acquired 50,000 shares of LendingClub stock in a transaction on Thursday, February 22nd. The stock was acquired at an average price of $3.83 per share, with a total value of $191,500.00. Following the purchase, the director now directly owns 1,563,673 shares in the company, valued at $5,988,867.59. The disclosure for this purchase can be found here. Insiders acquired a total of 25,977,175 shares of company stock valued at $100,907,483 in the last 90 days. Corporate insiders own 9.72% of the company’s stock.

A number of large investors have recently made changes to their positions in LC. Quantbot Technologies LP bought a new position in LendingClub in the 3rd quarter valued at $103,000. Xact Kapitalforvaltning AB bought a new position in LendingClub in the 4th quarter valued at $117,000. Phoenix Investment Adviser LLC bought a new position in LendingClub in the 4th quarter valued at $124,000. MANA Advisors LLC bought a new position in LendingClub in the 4th quarter valued at $126,000. Finally, Public Employees Retirement Association of Colorado bought a new position in LendingClub in the 4th quarter valued at $134,000. Hedge funds and other institutional investors own 85.73% of the company’s stock.

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LendingClub Company Profile

LendingClub Corporation provides online marketplace to connect borrowers and investors. Consumers and small business owners borrow through Lending Club. Investors use Lending Club to earn risk-adjusted returns from an asset class that has been closed to many investors and only available on a limited basis to large institutional investors.

Analyst Recommendations for LendingClub (NYSE:LC)

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