LendingClub's stock price has shown volatility, closing at $11.44 on March 25, 2025, with a pre-market increase of 1.12% but a regular market decrease of 1.80%. The volume of 689,636 indicates moderate trading activity.

Fundamental Analysis:

Insider Activity: Jordan Cheng sold 7,000 shares, reducing his holdings by 7.3%. This insider selling may signal reduced confidence.
Institutional Sentiment: 123 institutions increased their positions, while 131 decreased theirs, indicating mixed sentiment.
Regulatory Environment: The CFPB's operational halt could benefit fintech companies like LendingClub by reducing regulatory burdens, potentially increasing profitability.

Options Analysis:

Put Contract: A $13.00 put offers a 1.50 bid, allowing purchase at $11.50 with an 11.54% return if it expires worthless.
Call Contract: A $14.00 call with a 2.20 bid offers a 21.08% return if exercised.

Analyst Sentiment:

Analysts are mixed. JP Morgan lowered the price target to $14 from $17 (Neutral), while Piper Sandler and Keefe, Bruyette & Woods maintain Buy ratings with targets of $19 and $16, respectively.

Conclusion:

Given mixed signals, consider holding or exploring options trading. Selling puts could provide income, while buying calls might capture upside if regulatory changes boost the stock. Alternatively, waiting for market clarity is prudent.

What is price prediction 2025 for LC Stock?

The price prediction for LC stock in 2025 is expected to reach $15 to $17. This forecast is based on the stock being oversold, strong Q4 performance, and undervalued status. Analysts anticipate growth due to improving loan originations and favorable market conditions.

What is surpport and resistant level for LC Stock?

The S1 support level for LC Stock is $10.45 ,The R1 resistant level for LC Stock is $11.55.

What is the current price of LC Stock?

As of the end of day on 2025-03-28, the price of LC Stock was $10.41.

What is the target price of LC Stock?

The target price for LC Stock according to analyst rating is 18.60, with the highest price target at 20.00 and the lowest at 16.00. Analysts have a Strong Buy rating on LC Stock overall.

What is the market cap of LendingClub Corp?

The market cap of LC is $1.2B.

Is LendingClub Corp (LC) overvalued?

Analysis and Insights

LendingClub (LC) appears to be overvalued based on several key factors:

High Valuation Metrics:
- The price-to-earnings (P/E) ratio is elevated at 35.68 for Q4 2024, significantly above industry averages.
- The EV/EBITDA ratio of 7.12 for Q4 2024 indicates a premium valuation compared to peers.
- The price-to-sales (P/S) ratio of 1.58 and price-to-book (P/B) ratio of 1.37 further suggest stretched valuations.
Insider and Institutional Sentiment:
- Insider selling activity, including the General Counsel selling 7,000 shares (7.3% of their holdings), raises concerns about internal confidence in the stock's future.
- Institutional investors are showing mixed sentiment, with 131 institutions reducing their positions in Q4, outweighing the 123 that increased theirs.
Options Market Activity:
- The $13.00 put contract has a 65% chance of expiring worthless, reflecting bearish sentiment.
- The $14.00 call contract has a 41% chance of expiring worthless, indicating limited upside expectations.
Analyst Opinions:
- While some analysts, like Piper Sandler, maintain a "Buy" rating with a $20 price target, others, such as JPMorgan, have lowered their target to $14, citing valuation concerns.
Lack of Dividend Yield:
- LC does not offer a dividend, leaving investors reliant on capital appreciation for returns.

Conclusion:

Given the elevated valuation metrics, insider selling, and mixed institutional sentiment, LendingClub appears overvalued at current levels. Investors should exercise caution and consider waiting for a correction or clearer signs of growth before entering the stock.

What is LendingClub Corp (LC)'s business?

LendingClub Corporation is the parent company of LendingClub Bank (LC Bank). The Company operates most of its business through LC Bank, as a lender and originator of loans and as a regulated bank in the United States. LC Bank is the digital marketplace bank in the United States where members can access a range of financial products and services designed to help them pay less when borrowing and earn more when saving. LC Bank holds loans and funds those loans directly with its own capital and deposits. LC Bank’s primary loan products include unsecured personal loans, secured auto refinance loans, and patient and education finance loans (Consumer Loans). LC Bank’s commercial lending business is primarily focused on small businesses, and it participates in the United States small business administration (SBA) lending programs. LC Bank’s deposit business includes sourcing deposits directly from consumer and commercial customers and from third-party marketing channels and deposit brokers.

What is price prediction 2030 for LC Stock?

LendingClub (LC) stock is predicted to reach $25 by 2030, driven by its undervalued status and growth potential in the fintech sector. The stock is currently trading at 1.22 times tangible book value, significantly below peers like SoFi, which trades at 3.4 times. Analysts expect strong revenue growth supported by increasing loan originations and improving market conditions, with a price target of $19 to $20. A bull case could see the stock reaching $35 if the company executes well and the fintech sector expands rapidly.