Franklin Resources Inc. Boosts Position in LendingClub Corporation $LC

Franklin Resources Inc. grew its stake in shares of LendingClub Corporation (NYSE:LC) by 51.6% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 170,608 shares of the credit services provider’s stock after buying an additional 58,033 shares during the period. Franklin Resources Inc.’s holdings in LendingClub were worth $2,052,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Dynamic Technology Lab Private Ltd purchased a new stake in shares of LendingClub in the first quarter worth $869,000. Charles Schwab Investment Management Inc. increased its stake in LendingClub by 8.7% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,004,943 shares of the credit services provider’s stock worth $10,371,000 after acquiring an additional 80,100 shares during the last quarter. Capital Fund Management S.A. bought a new position in LendingClub in the 1st quarter worth about $774,000. Invst LLC purchased a new stake in shares of LendingClub in the 1st quarter valued at about $298,000. Finally, AlphaQuest LLC boosted its position in shares of LendingClub by 72.9% during the 1st quarter. AlphaQuest LLC now owns 40,864 shares of the credit services provider’s stock valued at $422,000 after acquiring an additional 17,224 shares during the last quarter. 74.08% of the stock is owned by hedge funds and other institutional investors.

LendingClub Stock Performance

Shares of LC opened at $18.78 on Thursday. LendingClub Corporation has a fifty-two week low of $7.90 and a fifty-two week high of $19.88. The firm has a market cap of $2.17 billion, a price-to-earnings ratio of 21.35 and a beta of 2.14. The firm has a 50 day moving average price of $16.85 and a 200-day moving average price of $14.77.

LendingClub (NYSE:LC) last issued its earnings results on Wednesday, October 22nd. The credit services provider reported $0.37 EPS for the quarter, topping analysts’ consensus estimates of $0.30 by $0.07. The company had revenue of $107.79 million for the quarter, compared to analysts’ expectations of $256.27 million. LendingClub had a net margin of 10.94% and a return on equity of 7.68%. The firm’s revenue was up 31.8% compared to the same quarter last year. During the same quarter last year, the company earned $0.13 EPS. As a group, equities research analysts predict that LendingClub Corporation will post 0.72 earnings per share for the current year.

LendingClub declared that its Board of Directors has initiated a stock repurchase program on Wednesday, November 5th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the credit services provider to reacquire up to 4.9% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its shares are undervalued.

Insider Transactions at LendingClub

In related news, CFO Andrew Labenne sold 20,903 shares of the firm’s stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $17.04, for a total transaction of $356,187.12. Following the transaction, the chief financial officer directly owned 181,750 shares in the company, valued at $3,097,020. This trade represents a 10.31% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Erin Selleck sold 2,390 shares of the business’s stock in a transaction that occurred on Friday, September 5th. The shares were sold at an average price of $16.82, for a total value of $40,199.80. Following the completion of the sale, the director owned 73,987 shares of the company’s stock, valued at $1,244,461.34. The trade was a 3.13% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 83,293 shares of company stock worth $1,486,287. Company insiders own 3.19% of the company’s stock.

Wall Street Analysts Forecast Growth

LC has been the topic of several research analyst reports. BTIG Research upped their price objective on shares of LendingClub from $18.00 to $26.00 and gave the stock a “buy” rating in a research report on Thursday, November 6th. Piper Sandler reissued an “overweight” rating and issued a $20.00 price target (up previously from $18.00) on shares of LendingClub in a research note on Thursday, October 23rd. JPMorgan Chase & Co. upgraded shares of LendingClub from a “neutral” rating to an “overweight” rating and raised their price objective for the company from $17.00 to $22.00 in a research report on Thursday, October 23rd. Zacks Research upgraded shares of LendingClub from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 28th. Finally, Citizens Jmp upgraded LendingClub from a “market perform” rating to an “outperform” rating and set a $23.00 price target on the stock in a research report on Monday, November 10th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $21.14.

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.