LendingClub Stock Surges on Post-Earnings Bull Note

The upgrade followed last night's earnings beat

Digital Content Manager
May 8, 2019 at 9:51 AM
facebook X logo linkedin


Following last night's unexpected first-quarter profit and revenue beat, Wedbush upgraded LendingClub Corporation (NYSE:LC) to "outperform" from "neutral," and hiked its target price to $5 from $3.75 -- a roughly 55% premium to Tuesday's close. The analyst said the consumer lending firm's tighter operating efficiency in the last three years could put adjusted EBITDA margins near 20% by the end of this year, while revenue could increase 12% to 15%. The stock is up 12.4% at $3.62, at last check.

The stock's reaction to earnings and Wedbush's bull note could spark even more upgrades, with only two "strong buy" ratings and three tepid "holds" on the books prior to today. The consensus 12-month price target of $4.41, meanwhile, is still a solid 29% premium to current levels. 

LC shares have been attempting to rally back toward their three-month peak of $3.66 in late February, but had recently run into a ceiling at their 200-day moving average. The security has sliced through this trendline today, though, and is on track for its best day since May 9, 2018, when it jumped 20.6%.

Short sellers have begun to cover, with short interest down 12.7% in the latest reporting period. The 15.83 million shares sold short represents only 3.9% of the stock's available float. However, it would still take over two weeks to buy back these bearish bets, at LC's average pace of trading, which could spark additional tailwinds on the charts, should short interest continue to decline. 

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI