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LendingClub Corporation

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Buy This Turnaround PowerhouseHey guys - today I have a super under-followed name making all of the right moves from my perspective that is poised to make huge gains over the next couple years. The company? LendingClub. Some of you may remember this as a busted IPO from a few years ago, and while the company had been struggling to find its identity, the upcoming acquisition of Radius Bank should prove to be a massive boon as the company will be in a much stronger financial position, with increased operating flexibility, cross selling opportunity, and thicker margins. Read on for the details. To start, if you're unfamiliar with LendingClub, the company currently operates a loan marketplace, where consumers can come to borrow money for a variety of uses, for everything from home repair to debt consolidation. Lending Club's platform then slices up these loans into pieces, that are then bid on by individual investors, banks, institutions, and LendingClub themselves. Essentially, right now the company makes 80% of its revenue from transaction fees, and 20% of its revenue from investing in the consumer debt offered on the platform. Advantages: Loan Demand: The rates LendingClub charges are typically lower than those charged by traditional banks or credit card companies for unsecured loans, so they are competitive on the customer acquisition side. Disadvantages: Loan Supply. LendingClub can only make as much money as the appetite for lending exists on their platform. If lenders and investors stop lending, then the marketplace fails to function and LendingClub is worthless. Since the IPO, the company has struggled to find profitability after changing strategy a couple times (first strictly operating the platform, then participating in the investor marketplace they run), only finally achieving solid financial results in 2019. Then, Covid struck, which further cratered the stock price. Consumer Credit originated on the platform held up (and continues to hold up) much better than expected with only minimal write offs, but the lending supply has proved trickier to fix. In the spring of this year, the participation of lenders in the marketplace dropped 88% as investors sought out safety and pulled out of consumer credit exposure, and they have only slowly begun to trickle back in. In response, and as part of a strategic shift, the company is now in process of merging with Radius Bank, a small but extremely well run national digital bank. This merger is a perfect fit. The balance sheet and business model of a bank will allow LendingClub to fix the loan supply problem, now able to leverage a deposit base, and the combination will allow for massive cross selling opportunity for both parties. Radius clients will now have another borrowing AND investing offering available to them, and LendingClub will be able to offer its borrowers additional financial services through Radius bank. LendingClub will be able to act as needed as a lender more aggressively within its platform, now with the leverage available to control it's own growth/profitability lever - warehousing loans on the books when loan supply ebbs and flows, while making money on all fronts. This combination will also lead to thicker margins, as LendingClub will be able to use Radius Bank to conduct the majority of it's business. Before, chunks of the transactions LendingClub was facilitating would go towards its partner banks, but now LC will get to keep all of that profit. This should improve operating margins by at least 10-20% over the next couple years. I think right now is the best time to get involved with the stock, as it has only recently shown signs of life on the vaccine news. The stock has been beaten enough, and has an extremely bright future. I've structured my trade two ways. First, I'm long stock for the asymmetric upside I see in share prices in the medium term. Second, I'm short 7 strike Jan puts. I like the idea of earning yield in this name in order to cushion the day to day price fluctuations, and I'm more than willing to buy a lot more stock on a dip. The ratio of equity to options is 2/3 - so for every 200 shares I'm long, I'm short 3 puts. I'd love to hear your thoughts, and follow me for more great trade ideas! Cheers
NYSE:LCLong
by PropNotes
14
MACD & STOCH RSI PositiveLEGAL DISCLAIMER : This is NOT AN INVESTMENT ADVICE ! It is intended to be used and must be used for informational & educational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise.
NYSE:LCLong
by Trade_Expert_
LC - DAILY CHART Hi, today we are going to talk about LendingClub and its current landscape. LendingClub is poised to receive increasing attention from the market as relevant events are taking place. The auto sector has signaled a yellow flag for the market as a confluence of data raises the inherent risk of the sector. The US Auto Loans Delinquent by 90 or More Days for the third quarter of 2019 edges a new record high of 4.71%; also the New York Fed survey of consumer credit has shown a spike in the rate of auto-loan rejections to 8.1% early this year, a discrepancy from 4.5% reported in the same period last year. A context that can represent an upcoming slowdown of sales on the sector and possible an increase in the risk of the company acquire bad debt, possibly implying in distressing days ahead for the lending company. Thank you for reading and leave your comments if you like. To have access to our exclusive contents, join the Traders Heaven today! Link Below. Disclaimer: All content of Golden Dragon has only educational and informational purposes, and never should be used or take it as financial advice.
NYSE:LC
by Igor-Silva
$LC UPGRADE WITH 50% UPSIDE POTENTIAL IN LENDING CLUBYesterdays earnings report was not fantastic, but maybe came as a relief to many who expected worse. Revenue was the main positive, haven risen to $174 mil for the quarter in comparison to $151 mil one year ago. This morning the first upgrade has been published by Wedbush, raising the price target to $5, representing considerable upside from the $3.22 closing price. Company Description LendingClub Corp. engages in the operation of an online credit marketplace for borrowers and investors. It offers personal, business, auto refinance, K-12 education loans and patient solutions.
NYSE:LCLong
by RedHotStocks
LendingClub: Could we see lower prices?I think LendingClub has a genius business model. Giving an alternative investment for the average person and quick access to capital for the average person. However, this company is still losing money, they have had regulatory run-ins with the SEC, and have a Debt/Equity of 2.8. This company is taking on a massive amount of risk without much industry moat. From a technical perspective, I see the price trying to stabilize around $3.50, but generally still in a down trend. You can see the descending trendline on my chart forcing price lower. LendingClub has a deal with Inuit to integrate turbotax, but this good news hasn't seemed to effect price. I expect to see lower lows here. I'm considering becoming an owner at $2 per share. Thanks for reading.
NYSE:LCShort
by micahjmiller
Lending Club could see $5.50 by Mid next week.Investors are loving what they heard on the call with LC executives. I'm expecting healthy gains until the end of the month. Be mindful not to enter at a peak and chase gains, I'd say its a good time to enter a options trade on this. 3.50 strike in the money with a straddle for downward movement, track the gann fan lines for support and resistance. Look for confirmation in support of the fan lines for a movement to the upside should signal an enter. Once this post positive on moving averages I expect institutional and computer generated buying. Saddle up. I'm already in @ 2.79 and I'm about to double down on an options play. I'll be in this long.
NYSE:LCLong
by HustleEconomics
**Correction: Fib Overlays on Lending ClubWanted to take a minute to line up LC to see what it looked like from recent high and lows under week time frame. I was amazed at its ability to dance between the overlays and show consistency to support laid out. Volume shows likely to the down side, however, RSI shows on its way to bullish with earnings on the way. Nasdaq community seems to be bullish and WS analysis have LC rated for a buy. www.nasdaq.com If volume comes with earnings this could provide the turn-around needed to bring this back from the bottom highs of long ago. Thoughts or feedback welcome. Do your own research and invest at your own risk. This is not financial advice.
NYSE:LC
by CEOSHMO
Fib Overlays on Lending ClubWanted to take a minute to line up LC to see what it looked like from recent high and lows under week time frame. I was amazed at its ability to dance between the overlays and show consistency to support laid out. Volume shows likely to the down side, however, RSI shows on its way to bullish with earnings on the way. Nasdaq community seems to be bullish and WS analysis have LC rated for a buy. www.nasdaq.com If volume comes with earnings this could provide the turn-around needed to bring this back from the bottom highs of long ago. Thoughts or feedback welcome. Do your own research and invest at your own risk. This is not financial advice.
NYSE:LCLong
by CEOSHMO