LendingClub (NYSE:LC) Shares Gap Down – What’s Next?

LendingClub Corporation (NYSE:LC)’s share price gapped down before the market opened on Thursday . The stock had previously closed at $19.57, but opened at $18.22. LendingClub shares last traded at $17.1050, with a volume of 3,590,694 shares trading hands.

LendingClub News Summary

Here are the key news stories impacting LendingClub this week:

• Positive Sentiment: Solid Q4 results—EPS $0.35 (beat consensus by $0.01), revenue up ~23% YoY and originations +40% to $2.6B, showing clear demand recovery and margin improvement. LendingClub Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Management raised FY‑2026 EPS guidance to $1.65–$1.80 (well above Street prior consensus ~$1.44), signaling confidence in continued growth and profitability. Earnings Presentation / Guidance
• Positive Sentiment: Analyst support: BTIG reaffirmed a Buy and $26 price target (material upside to current levels), which could support upside if sentiment improves. BTIG Buy Rating via Benzinga
• Neutral Sentiment: Q1 guidance of $0.34–$0.39 EPS is essentially in line with Street expectations, so near‑term quarterly risk is muted. Slide Deck / Q1 Guidance
• Negative Sentiment: Market sold off after earnings—some traders focused on revenue coming in slightly below certain estimates and that EPS only narrowly beat, prompting profit‑taking. Coverage noting the drop and investor concern is driving the decline. Why Shares of LendingClub Are Sinking Today
• Negative Sentiment: Elevated short interest and recent insider sales increase downward pressure and raise sentiment risk—shorts grew ~22.7% in January and insiders have sold material shares. Quiver Quant: Stock Falls on Q4 Earnings

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on LC. Zacks Research lowered LendingClub from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. Piper Sandler restated an “overweight” rating and set a $23.00 price objective on shares of LendingClub in a research note on Thursday. BTIG Research reiterated a “buy” rating and issued a $26.00 price objective on shares of LendingClub in a research note on Thursday. JPMorgan Chase & Co. raised their target price on shares of LendingClub from $22.00 to $25.00 and gave the stock an “overweight” rating in a report on Thursday, December 4th. Finally, Janney Montgomery Scott upped their price target on shares of LendingClub from $17.00 to $20.00 and gave the company a “neutral” rating in a report on Thursday, November 6th. Six research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $22.00.

LendingClub Stock Performance

The firm has a market capitalization of $1.92 billion, a PE ratio of 18.91 and a beta of 2.08. The firm’s 50 day moving average price is $19.39 and its 200-day moving average price is $17.21.

LendingClub (NYSE:LC) last released its quarterly earnings results on Wednesday, January 28th. The credit services provider reported $0.35 earnings per share for the quarter, topping analysts’ consensus estimates of $0.34 by $0.01. LendingClub had a return on equity of 7.68% and a net margin of 10.94%.The company had revenue of $266.47 million during the quarter, compared to analysts’ expectations of $262.88 million. During the same quarter in the prior year, the firm posted $0.08 EPS. LendingClub’s quarterly revenue was up 22.7% compared to the same quarter last year. LendingClub has set its FY 2026 guidance at 1.650-1.800 EPS and its Q1 2026 guidance at 0.340-0.390 EPS. On average, equities research analysts expect that LendingClub Corporation will post 0.72 earnings per share for the current fiscal year.

LendingClub announced that its Board of Directors has approved a stock repurchase program on Wednesday, November 5th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the credit services provider to buy up to 4.9% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In other LendingClub news, Director Erin Selleck sold 2,390 shares of the stock in a transaction on Friday, December 5th. The shares were sold at an average price of $19.47, for a total transaction of $46,533.30. Following the transaction, the director directly owned 76,377 shares of the company’s stock, valued at $1,487,060.19. This trade represents a 3.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 3.31% of the company’s stock.

Hedge Funds Weigh In On LendingClub

A number of institutional investors and hedge funds have recently bought and sold shares of LC. Aster Capital Management DIFC Ltd acquired a new stake in LendingClub in the 3rd quarter valued at about $26,000. Quarry LP increased its holdings in shares of LendingClub by 343.0% in the third quarter. Quarry LP now owns 3,030 shares of the credit services provider’s stock valued at $46,000 after purchasing an additional 2,346 shares during the last quarter. Headlands Technologies LLC purchased a new position in LendingClub during the second quarter worth approximately $53,000. Advisory Services Network LLC acquired a new position in LendingClub during the third quarter worth $59,000. Finally, Jones Financial Companies Lllp grew its holdings in LendingClub by 46.7% in the 3rd quarter. Jones Financial Companies Lllp now owns 4,051 shares of the credit services provider’s stock valued at $67,000 after buying an additional 1,290 shares in the last quarter. 74.08% of the stock is currently owned by institutional investors and hedge funds.

LendingClub Company Profile

LendingClub Corporation operates an online lending marketplace that connects borrowers seeking personal and small business credit with individual and institutional investors. The platform leverages technology to streamline the loan application and underwriting process, offering unsecured personal loans, auto refinancing, and small business loans. In addition to lending products, LendingClub provides high-yield savings accounts and certificates of deposit through its banking charter, following its acquisition of Radius Bank in 2021.

Founded in 2006 by Renaud Laplanche, LendingClub pioneered peer-to-peer lending in the United States, helping to democratize access to credit and investment opportunities.