BTIG analyst Mark Palmer assigned a Buy rating to LendingClub Corp (NYSE: LC) on May 24 and set a price target of $7. The company’s shares closed on Friday at $3.37.
Palmer noted:
“with Mgmt. Investors should be more optimistic about reduced volatility in LendingClub Corporation’s (LC, Buy, $7 PT) operating performance in coming quarters, and they should be less pessimistic about how the company’s marketplace lending platform would fare if a repeat of the market dislocations seen in 2016 were to occur. These were two of the takeaways from our meeting with CEO Scott Sanborn and CFO Tom Casey yesterday at LC’s headquarters in San Francisco. With that said, Sanborn and Casey were particularly emphatic in asserting that Goldman Sachs’ (GS, Not Rated) online lending business, Marcus, does not represent an existential threat to LC – a concern that we believe is partially to blame for the stock trading at just 6.3x the company’s consensus FY20E adjusted EBITDA.”
According to TipRanks.com, Palmer is a 5-star analyst with an average return of 9.8% and a 62.0% success rate. Palmer covers the Financial sector, focusing on stocks such as Santander Consumer USA, Assured Guaranty Ltd, and Synchrony Financial.
Currently, the analyst consensus on LendingClub Corp is Strong Buy and the average price target is $5.60, representing a 66.2% upside.
In a report issued on May 9, Oppenheimer also maintained a Buy rating on the stock with a $5 price target.
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Based on LendingClub Corp’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $31.18 million. In comparison, last year the company had a GAAP net loss of $29.84 million.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LC in relation to earlier this year.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
LendingClub Corp. engages in the operation of an online credit marketplace for borrowers and investors. It offers personal, business, auto refinance, and K-12 education loans; and patient solutions. The company was founded by Renaud Laplanche in October 2006 and is headquartered in San Francisco, CA.
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