LendingClub Corp (LC) Loans Sold to JP Morgan At A Premium


Shares of LendingClub Corp (NYSE:LC) are all over the place today after news leaked that JP Morgan would be buying close to $1 billion in loans by the company.

According to The Wall Street Journal, J.P. Morgan Chase & Co has agreed to purchase over $900 million in loans, issued to consumers with high credit ratings. In fact the average FICO credit rating of those issued these loans stands at around 700. Shares of LendingClub Corp (NYSE:LC), which have been beaten down as of late, saw a major spike of close to 8% within miniutes at around 11:30 a.m ET today. Since then, however, the stock has dropped back into the red and is currently trading at around the same level as before the spike.

We will be following shares closely throughout the remainder of the day to see how the market reacts. The stock is down 4.20% or $0.31 following the news, hitting $7.07 per share. Approximately 3.54 million shares traded hands. LC shares have declined 54.05% since June 25, 2015 and are currently downtrending. It has underperformed the S&P500 by 45.18%.

From a total of 8 analysts covering LendingClub Corporation (NYSE:LC) stock, 4 rate it a “Buy”, 1 a “Sell”, and 3 a “Hold”. This means that 50% of the ratings are positive. The highest target price is $24 while the lowest target price is $12. The mean of all analyst targets is $17.86 which is 152.62% above today’s ($7.07) stock price. LendingClub Corporation was the topic of 12 analyst reports since July 31, 2015 according to the firm StockzIntelligence Inc. Sterne Agee CRT upgraded shares on November 18 to a “Buy” rating. Bruyette & Woods” initiated shares with a”Mkt Perform” rating and a $18 target share price in their report from an August 12. FBR Capital maintained LC stock in a recent report from October 30 with a “Outperform” rating. Finally, KBW initiated the stock with a “Market Perform” rating in a report they issued on an August 13.

The institutional sentiment decreased to 1.13 in Q2 2015. It’s down 0.76, from 1.89 in 2015Q2. The ratio worsened, as 40 funds sold all their LendingClub Corp shares they owned while 29 reduced their positions. 21 funds bought stakes while 57 increased their total positions. Institutions now own 264.05 million shares which is 12.82% more than the previous share count of 234.05 million in 2015Q2.

Norwest Venture Partners X L P holds 90.6% of its total portfolio in LendingClub Corp, equating to 27.82 million shares. Foundation Capital Llc owns 27.07 million shares representing 43.8% of their total US portfolio. Moreover, Union Square Opportunity Gp L.L.C. has 43.62% of their total portfolio invested in the company, equating to 1.00 million shares. The California-based Regents Of The University Of California has a total of 31.99% of their portfolio invested in the stock. Kpcb Dgf Associates Llc, a California-based fund reported 3.99 million shares owned.

LendingClub Corporation is engaged in providing online marketplace for connecting borrowers and investors. The company has a market cap of $2.79 billion. The Company’s online marketplace connects borrowers. It currently has negative earnings. Lending Club’s marketplace allows borrowers and investors to engage in transactions relating to standard or custom program loans.