LendingClub Corporation (LC) Shares: Cheap or Risky?

LendingClub Corporation (NYSE:LC) saw a downside of -0.07% to close Monday at $30.53 after subtracting -$0.02 on the day. The 5-day average trading volume is 2,226,920 shares of the company’s common stock. It has gained $31.78 in the past week. An average of 1,849,695 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,950,122.

LC’s 1-month performance is 1.63% or $0.49 on its low of $26.34 reached on 09/20/21. The company’s shares have touched a 52-week low of $4.40 and high of $33.30, with the stock’s rally to the 52-week high happening on 09/07/21. YTD, LC has achieved 189.11% or $19.97. However, the current price is down -8.31%% from the 52-week high price.


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Insider Transactions

On Sep 15, 27 days have gone by since the last insider trading activity for LendingClub Corporation (LC). Athey Susan C (Director) most recently sold 8,310 shares at $29.20 per share on Sep 15. This transaction cost the insider $242,652. Chief Risk Officer, ARMSTRONG ANNIE, sold 3,686 shares at a price of $31.37 on Sep 07. Then, on Aug 20, Bank-Chief Capital Officer Kay Valerie sold 1,091 shares at a price of $27.52 per share. This transaction amounted to $30,025.

Valuation Metrics

LendingClub Corporation (LC) has a trailing price-to-earnings (P/E) ratio of 14.40 for the broader industry and 12.78 for the sector.LC stock has a beta of 1.85. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 5.61 while the price-to-book (PB) in the most recent quarter is 3.91, with the price to cash flow ratio at 6.10.

As well, the company’s long term debt to equity for the quarter ending June 29 was 0.94, while the total debt to equity was 4.36. In terms of profitability, the gross margin trailing 12 months is 88.60%. while for the period ending June 29; LendingClub Corporation’s operating margin was -19.50%. The firm’s gross profit as reported stood at $68.19 million against revenue of $209.69 million.

Earnings Surprise

For the quarterly period ending June 29 this year, LendingClub Corporation’s cash and short-term investments amounted to $277.51 million against total debt of $881.66 million. Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected LC to announce -$0.43 per share in earnings in its latest quarter, but it posted $0.09, representing a 120.90% surprise. LC stock balance sheet for the quarter ending June 29 shows that, with total debt at $881.66 million. Shareholders hold equity totaling $98.6 million

Technical Picture

Let’s look briefly at LendingClub Corporation (LC) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 11 October was 64.11% to suggest the stock is trending Neutral, with historical volatility in this time period at 38.50%.

The stock’s 5-day moving average is $29.60, reflecting a +10.82% or $2.98 change from its current price. LC is currently trading +3.99% above its 20-day SMA, +140.58% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by +25.12% and +240.74% respectively.

Stochastic %K and %D was 71.57% and 68.70% and the average true range (ATR) pointed at 1.81. The RSI (14) points at 59.98%, while the 14-day stochastic is at 76.46% with the period’s ATR at 1.74. The stock’s 9-day MACD Oscillator is pointing at 1.51 and 1.69 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for LendingClub Corporation (NYSE: LC), Maxim Group upgraded it to a Buy rating. They previously had a Hold rating on the stock. Analysts offering their rating for LC stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate LC as a “sell,”, while 4 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 2 have offered a “buy” rating.

What is LC’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $14.00 and a high of $35.00, with their median price target at $28.00. Looking at these predictions, the average price target given by analysts is for LendingClub Corporation (LC) stock is $26.92.

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