Big Money Joins the LendingClub

LendingClub is a digital marketplace bank using data and analytics (over 150 billion data points collected) to improve its underwriting ability and overall profitability. Its growing customer base is comprised of high-income, high-credit-score consumers. And its business model, which focuses on loan fees and interest income, is proving to be resilient.

LC’s third-quarter earnings for fiscal 2024 showed 8% revenue growth to more than $200 million. The company grew its loan originations by 6%, to $1.9 billion. That helped drive total asset growth, which was 25%, to more than $11 billion. LendingClub has also seen encouraging uptake of a new savings product, with over $500 million in deposits already.

It’s no wonder LC shares are up 87% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

LendingClub Welcomes Big Money

Institutional volumes reveal plenty. In the last year, LC has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in LC shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of financials names are under accumulation right now. But there’s a powerful fundamental story happening with LendingClub.

LendingClub Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, LC has had strong sales and earnings growth:

• 3-year sales growth rate (+38.5%)
• 3-year EPS growth rate (+645.3%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +85.3%.

Now it makes sense why the stock has been powering to new heights. LC has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

LendingClub has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when LC was a top pick…making share values jump:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

LendingClub Price Prediction

The LC rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in LC at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.