LendingClub (NYSE:LC) Shares Gap Down – Here’s What Happened

31 Jan 2026, 09:14 by Doug Wharley · The Cerbat Gem

LendingClub Corporation (NYSE:LC – Get Free Report) gapped down prior to trading 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 traded.

Key Stories Impacting LendingClub

Here are the key news stories impacting LendingClub this week:

Positive Sentiment: Quarterly beat and stronger guidance — LC reported Q4 EPS of $0.35 (vs. ~$0.34 consensus) and revenue of ~$266M, with revenue and originations rising year-over-year; the company raised FY2026 EPS guidance to $1.65–$1.80, above Wall Street consensus. This underpins faster growth expectations. Read More.
Positive Sentiment: Loan origination and product traction — Originations rose ~40% YoY to ~$2.6B and management highlighted growth in its LevelUp product suite, supporting revenue visibility and customer acquisition progress. Read More.
Positive Sentiment: Analyst support — BTIG reaffirmed a “buy” rating with a $26 price target, supplying a constructive counterpoint for investors looking past the headline noise. Read More.
Neutral Sentiment: Deep-dive coverage and transcripts available — Multiple outlets published earnings transcripts and deep dives that help investors separate one-time disclosures from operating performance, useful for modeling but not immediately market-moving. Read More.
Negative Sentiment: Accounting-shift disclosure triggered sharp sell-off — A newly disclosed accounting change prompted investor concern about metric comparability and near-term reported results, prompting a steep intraday drop in shares. That disclosure is the principal driver of recent market volatility. Read More.
Negative Sentiment: Leadership shakeup raises governance and execution concerns — Reports of management changes prompted questions about continuity as the company scales, amplifying short-term selling pressure. Read More.
Negative Sentiment: Market reaction and investor commentary emphasize risk — Several analyst and commentary pieces interpret the combination of the accounting disclosure and management moves as reasons for the recent sell-off, increasing near-term headline risk despite solid underlying metrics. Read More.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on LC shares. Zacks Research downgraded shares of LendingClub from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. Weiss Ratings restated a “hold (c)” rating on shares of LendingClub in a report on Monday, December 29th. Citizens Jmp raised shares of LendingClub from a “market perform” rating to an “outperform” rating and set a $23.00 price target on the stock in a research report on Monday, November 10th. Keefe, Bruyette & Woods increased their price target on LendingClub from $20.00 to $22.00 and gave the company an “outperform” rating in a research report on Friday, November 7th. Finally, Janney Montgomery Scott raised their price target on shares of LendingClub from $17.00 to $20.00 and gave the stock a “neutral” rating in a research note on Thursday, November 6th. Six research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, LendingClub has an average rating of “Moderate Buy” and a consensus price target of $22.00.

Get Our Latest Research Report on LendingClub

LendingClub Stock Up 2.9%

The firm’s 50-day moving average is $19.42 and its 200-day moving average is $17.24. The company has a market capitalization of $1.95 billion, a PE ratio of 14.70 and a beta of 2.08.

LendingClub (NYSE:LC – Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The credit services provider reported $0.35 EPS for the quarter, topping the consensus estimate of $0.34 by $0.01. LendingClub had a net margin of 13.58% and a return on equity of 9.62%. The firm had revenue of $266.47 million for the quarter, compared to the consensus estimate of $262.88 million. During the same period last year, the firm posted $0.08 earnings per share. The business’s 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. As a group, equities research analysts predict that LendingClub Corporation will post 0.72 EPS for the current year.

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

Insider Buying and Selling

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 completion of the sale, the director owned 76,377 shares of the company’s stock, valued at $1,487,060.19. This represents a 3.03% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 3.19% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On LendingClub

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Comerica Bank grew its holdings in shares of LendingClub by 6,520.7% during the 4th quarter. Comerica Bank now owns 72,232 shares of the credit services provider’s stock worth $1,368,000 after acquiring an additional 71,141 shares during the period. Pictet Asset Management Holding SA boosted its stake in LendingClub by 200.6% in the 4th quarter. Pictet Asset Management Holding SA now owns 85,204 shares of the credit services provider’s stock worth $1,614,000 after purchasing an additional 56,864 shares in the last quarter. Vanguard Group Inc. lifted its stake in shares of LendingClub by 4.6% in the fourth quarter. Vanguard Group Inc. now owns 11,697,333 shares of the credit services provider’s stock worth $221,547,000 after buying an additional 516,542 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH lifted its position in LendingClub by 24.2% in the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 327,727 shares of the credit services provider’s stock valued at $6,227,000 after acquiring an additional 63,845 shares in the last quarter. Finally, Round Rock Advisors LLC lifted its holdings in shares of LendingClub by 58.9% during the fourth quarter. Round Rock Advisors LLC now owns 75,504 shares of the credit services provider’s stock valued at $1,430,000 after purchasing an additional 27,999 shares in the last quarter. Hedge funds and other institutional investors own 74.08% of the company’s stock.

About LendingClub

(Get Free Report)

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.