San Francisco – Sanborn Scott, the CEO of LendingClub Corp (NYSE:LC), has sold 17,000 shares of the company's common stock, according to a recent SEC filing. The shares were sold at an average price of $15.8363, totaling approximately $269,217. The transaction comes as LendingClub's stock has surged nearly 88% over the past six months, with the company currently valued at $1.8 billion.
This transaction was executed as part of a prearranged trading plan under Rule 10b5-1, aimed at diversifying Scott's assets. The plan allows for the sale of up to 4.2% of his equity interest in LendingClub. Notably, these transactions represent Scott's first sales of LendingClub stock during his eight-year tenure as CEO, aside from sales related to equity tax obligations. According to InvestingPro, analysts maintain a bullish outlook on the stock, with a consensus "Buy" recommendation.
Following the transaction, Scott retains ownership of 1,329,184 shares in the company. InvestingPro analysis indicates the stock is trading near its Fair Value, with 14 additional exclusive insights available to subscribers, including detailed profitability metrics and growth forecasts.
In other recent news, LendingClub has been the focus of multiple financial analyses and adjustments. JPMorgan (NYSE:JPM) has revised its rating on LendingClub, downgrading the stock from Overweight to Neutral, despite raising its price target from $14.00 to $17.00. The firm acknowledges the positive aspects of LendingClub's strategic plan, which includes expanding the balance sheet with whole loans and boosting loan sales. However, the execution of this strategy is expected to take several quarters.
LendingClub's third-quarter earnings and revenue results have also attracted attention. The company's Q3 performance fell short of expectations, with net revenue significantly below consensus, projections, and prior guidance. Despite this, LendingClub's focus on profitability over net revenue was evident in its adjusted EBITDA, which was closer to expectations.
Maxim (NASDAQ:MXIM) Group and Piper Sandler have also adjusted their outlook on LendingClub. Maxim Group raised its price target to $19.00, maintaining a Buy rating on the stock. Piper Sandler increased the company's stock target price from $13.00 to $15.00, maintaining an Overweight rating. Both firms have cited LendingClub's potential value and strategic plan as reasons for their adjustments.
Finally, LendingClub ended the third quarter with $141.5 million in cash, a decrease from $186.3 million in the second quarter. The company anticipates the repayment of its only debt of $34.2 million and expects to generate $20 million from the pending sale of its headquarters in the fourth quarter. These recent developments highlight LendingClub's ongoing financial management and strategic planning.
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