Drilling Down Into LendingClub Corporation (LC)

LendingClub Corporation (LC) is an interesting player in the Financial space, with a focus on Credit Services. The stock has been active on the tape, currently trading at $5.83, down from yesterday’s close by -1.35%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

No amount of research is complete without a bird’s eye view of the financial data. LendingClub Corporation (LC) currently trades with a market capitalization of $2.39 Billion. That value represents a market adjusting for revenues that have been falling by -13.95 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For LC, the company currently has $693.41 Million of cash on the books, which is offset by $ current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-50.76 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $-0.06 on a per share basis this quarter. Perhaps, that suggests something about why 2.72% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, LendingClub Corporation recorded a 52-week high of $6.78. It is now trading 0.95% off that level. The stock is trading $5.53 its 50-day moving average by -0.3%. The stock carved out a 52-week low down at $3.44.

In recent action, LendingClub Corporation (LC) has made a move of +6.78% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 39.19, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 12.91% with $378.88 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of LC.

Previous articleTyson Foods, Inc. (TSN): From Top to Bottom
Next articleThe Case for and Against Merrimack Pharmaceuticals, Inc. (MACK)