Providing a diverse range of perspectives from bullish to bearish, 6 analysts have published ratings on LendingClub (NYSE:LC) in the last three months.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 3 | 1 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 2 | 3 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for LendingClub, presenting an average target of $17.0, a high estimate of $19.00, and a low estimate of $15.00. This upward trend is apparent, with the current average reflecting a 22.13% increase from the previous average price target of $13.92.
Deciphering Analyst Ratings: An In-Depth Analysis
In examining recent analyst actions, we gain insights into how financial experts perceive LendingClub. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Reginald Smith | JP Morgan | Raises | Neutral | $17.00 | $14.00 |
| Michael Diana | Maxim Group | Raises | Buy | $19.00 | $16.00 |
| Giuliano Bologna | Compass Point | Raises | Buy | $19.00 | $15.00 |
| Brad Capuzzi | Piper Sandler | Raises | Overweight | $15.00 | $13.00 |
| David Chiaverini | Wedbush | Raises | Outperform | $17.00 | $14.00 |
| Timothy Switzer | Keefe, Bruyette & Woods | Raises | Outperform | $15.00 | $11.50 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to LendingClub. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of LendingClub compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
To gain a panoramic view of LendingClub's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on LendingClub analyst ratings.
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Discovering LendingClub: A Closer Look
LendingClub Corp is a company engaged in operating an online lending marketplace platform that connects borrowers and investors for the provision of the loan facility. It offers investors access to an asset class that has generally been closed to many investors and only available on a limited basis to institutional investors. The company through the platform offers loan products such as personal, education and patient finance, small business, and auto to interested investors. It generates a majority of the revenue from the transaction fees received from the platform's role in accepting and decisioning applications on behalf of the bank partners to enable loan originations.
LendingClub's Economic Impact: An Analysis
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Growth: LendingClub's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 0.51%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: LendingClub's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 7.16%, the company may face hurdles in effective cost management.
Return on Equity (ROE): LendingClub's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.1%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.14%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: LendingClub's debt-to-equity ratio is below the industry average at 0.02, reflecting a lower dependency on debt financing and a more conservative financial approach.
Understanding the Relevance of Analyst Ratings
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
