SAN FRANCISCO—Morris John C., a director at LendingClub Corp (NYSE:LC), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Morris sold 2,500 shares of LendingClub common stock on October 29, 2024, at an average price of $14.3579 per share. This transaction amounted to a total of $35,894.
Following this sale, Morris holds 203,348 shares directly. Additionally, he has an unvested portion of 18,360 restricted stock units, which are part of a previously granted non-employee director equity award under the LendingClub Corporation 2014 Equity Incentive Plan. Each restricted stock unit represents the contingent right to receive one share of the company's common stock upon vesting.
In other recent news, Lending Club's third-quarter performance revealed some fluctuations. Maxim Group has revised its fourth-quarter revenue estimate for Lending Club to $321 million, down from the prior $400 million forecast, and widened the adjusted EBITDA loss prediction to $30 million from $20 million. Despite these adjustments, Maxim Group maintains its Buy rating, expressing continued confidence in the company's potential for profitability.
In contrast, Piper Sandler has adjusted its outlook on Lending Club, increasing the price target to $15.00 from the previous $13.00 while maintaining an Overweight rating on the stock. The revision follows Lending Club's third-quarter earnings for 2024, which surpassed expectations. This success was largely attributed to a rise in net interest income and improved pricing on loan sales.
Moreover, 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
While Morris John C.'s recent sale of LendingClub Corp (NYSE:LC) shares might raise eyebrows, it's essential to consider the broader financial context of the company. According to InvestingPro data, LendingClub's stock has shown remarkable strength, with a 173.22% price total return over the past year and an impressive 88.56% return in the last six months. This robust performance suggests that despite the director's sale, investor confidence in the company remains high.
LendingClub's financial health appears mixed. The company boasts a market capitalization of $1.6 billion and has been profitable over the last twelve months, with a P/E ratio of 30.67. However, an InvestingPro Tip indicates that LendingClub is trading at a high earnings multiple, which could signal that the stock is potentially overvalued relative to its earnings.
Another InvestingPro Tip reveals that analysts anticipate a sales decline in the current year, which aligns with the reported revenue growth of -5.89% over the last twelve months. This projection might explain why a director chose to sell shares at this time.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for LendingClub, providing a deeper understanding of the company's financial position and market performance. These insights could be particularly valuable given the stock's recent volatility and the mixed signals in its financial metrics.
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