LendingClub (NYSE:LC) Shares Gap Down – Should You Sell?

LendingClub Co. (NYSE:LC)’s share price gapped down before the market opened on Wednesday . The stock had previously closed at $16.83, but opened at $14.00. LendingClub shares last traded at $13.92, with a volume of 3,586,566 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on LC. StockNews.com lowered LendingClub from a “hold” rating to a “sell” rating in a report on Friday, October 25th. Maxim Group increased their target price on shares of LendingClub from $16.00 to $19.00 and gave the company a “buy” rating in a research note on Friday, October 25th. Wedbush lifted their price target on shares of LendingClub from $14.00 to $17.00 and gave the stock an “outperform” rating in a research report on Thursday, October 24th. Piper Sandler reaffirmed an “overweight” rating and issued a $19.00 price target (down previously from $20.00) on shares of LendingClub in a report on Wednesday. Finally, Keefe, Bruyette & Woods reaffirmed an “outperform” rating and set a $16.00 target price (down from $17.00) on shares of LendingClub in a report on Wednesday. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and seven have assigned a buy rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $16.38.

LendingClub Stock Down 0.7 %

The stock has a fifty day simple moving average of $16.36 and a 200-day simple moving average of $13.54. The company has a market capitalization of $1.61 billion, a P/E ratio of 31.83 and a beta of 2.03.

Insider Activity at LendingClub

In other news, CEO Scott Sanborn sold 17,000 shares of the firm’s stock in a transaction dated Thursday, January 2nd. The shares were sold at an average price of $16.12, for a total value of $274,040.00. Following the transaction, the chief executive officer now owns 1,312,184 shares of the company’s stock, valued at approximately $21,152,406.08. This trade represents a 1.28 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, General Counsel Jordan Cheng sold 22,000 shares of the firm’s stock in a transaction that occurred on Friday, November 8th. The shares were sold at an average price of $14.83, for a total transaction of $326,260.00. Following the completion of the transaction, the general counsel now directly owns 89,385 shares in the company, valued at approximately $1,325,579.55. The trade was a 19.75 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 73,000 shares of company stock valued at $1,122,710 over the last ninety days. 3.31% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. FMR LLC grew its stake in shares of LendingClub by 32.1% in the third quarter. FMR LLC now owns 5,865 shares of the credit services provider’s stock valued at $67,000 after buying an additional 1,424 shares in the last quarter. The Manufacturers Life Insurance Company boosted its stake in LendingClub by 0.5% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 302,844 shares of the credit services provider’s stock valued at $2,562,000 after purchasing an additional 1,445 shares during the period. AlphaMark Advisors LLC acquired a new position in shares of LendingClub in the 3rd quarter valued at approximately $32,000. Hsbc Holdings PLC increased its stake in LendingClub by 38.3% in the second quarter. Hsbc Holdings PLC now owns 16,748 shares of the credit services provider’s stock valued at $141,000 after acquiring an additional 4,640 shares during the last quarter. Finally, Aigen Investment Management LP lifted its position in shares of LendingClub by 18.5% during the 3rd quarter. Aigen Investment Management LP now owns 31,542 shares of the credit services provider’s stock worth $361,000 after buying an additional 4,917 shares during the last quarter. 74.08% of the stock is currently owned by institutional investors.

About LendingClub

LendingClub Corporation, operates as a bank holding company, that provides range of financial products and services in the United States. It offers deposit products, including savings accounts, checking accounts, and certificates of deposit. The company also provides loan products, such as consumer loans comprising unsecured personal loans, secured auto refinance loans, and patient and education finance loans; and commercial loans, including small business loans.