SAN FRANCISCO— LendingClub Corp 's (NYSE:LC) General Counsel and Secretary, Cheng Jordan, recently sold a significant portion of the company's common stock. According to a filing with the Securities and Exchange Commission, Jordan sold 22,000 shares on November 8, with a total transaction value of approximately $326,180. The shares were sold at a weighted-average price of $14.8264, with individual trades executed at prices ranging from $14.68 to $14.97.
Following this transaction, Jordan retains ownership of 89,385 shares of LendingClub's stock. The sale was conducted under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan for selling stocks to avoid any potential insider trading violations.
In other recent news, Lending Club's third-quarter earnings report showed revenue and earnings that fell short of expectations, leading to a 30% drop in share value. However, the company's adjusted EBITDA was closer to expectations, indicating a focus on profitability over net revenue. Maxim Group revised its fourth-quarter revenue estimate for Lending Club to $321 million and widened the adjusted EBITDA loss prediction to $30 million. Despite these adjustments, Maxim Group maintains its Buy rating on Lending Club, expressing confidence in the company's potential for profitability.
Piper Sandler also adjusted its outlook on Lending Club, raising the price target and maintaining an Overweight rating. This follows Lending Club's third-quarter earnings, which surpassed expectations due to a rise in net interest income and improved pricing on loan sales. The company revised its pretax, pre-provision net revenue guidance upward and decided to maintain its origination guidance despite anticipating a seasonal slowdown.
Lending Club reported a 6% sequential increase in originations, reaching $1.9 billion, and an 8% rise in revenue to over $200 million. The company's balance sheet grew by 25% year-to-date to over $11 billion in total assets. These recent developments indicate the company's robust growth and positive future outlook.
InvestingPro Insights
Recent market data from InvestingPro sheds additional light on LendingClub's financial position and stock performance, providing context to the insider sale reported. The company's stock has shown remarkable strength recently, with a significant return of 12% over the last week and an impressive 201.54% over the past year. This upward momentum has brought the stock price to 98.99% of its 52-week high, trading at $15.49 as of the last close.
LendingClub's financial metrics present a mixed picture. While the company boasts a market capitalization of $1.77 billion, it operates with a P/E ratio of 33.45, which some investors might consider high. An InvestingPro Tip notes that the company is "Trading at a high earnings multiple," which could be a factor in the insider's decision to sell shares.
Another InvestingPro Tip highlights that LendingClub is "Quickly burning through cash," which may raise concerns about the company's financial stability. However, it's worth noting that liquid assets currently exceed short-term obligations, providing some reassurance to investors.
For those seeking a more comprehensive analysis, InvestingPro offers 17 additional tips on LendingClub, providing deeper insights into the company's financial health and market position. These tips can be particularly valuable for investors looking to make informed decisions in light of recent insider trading activity.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.