Insider Trading Alert: LendingClub Corp

LendingClub Corp (NYSE:LC) insider has recently participated in insider trading activity. Chief Technology Officer, MacIlwaine John sold 12,500 shares for $108,015 via one transaction Jan 14. Following the transaction, the insider now owns 14,106 shares in total, priced at $116374.5 as of Wednesday. Another notable insider trading was done by the same insider on Jan 13. MacIlwaine John Sold 12,500 shares at an average price of $9.58 for a total of $119,785. Moreover, this insider carried out a sale of 12,500 shares at $9.38 each on Jan 12. The transaction amounted to $117,281. Director Morris John C. buy10, 000 shares for $80,394 through one transaction Feb 16. Following this sale, this insider’s stake in the company comprises 34,217 shares, priced at $282290.25 as of Wednesday.

The stock has experienced a total of 15 insider trades in the past three months. These trades include 13 sell activities and 2 buy trades. Furthermore, over the past 12 months, the stock was traded 80 times by insiders. In 65 of these trades, the insider was a seller while an employee of the company was the buyer in just 15 instances.

LendingClub Corp (LC) on February 11, 2016 reported record results highlighted by all-time highs in originations, operating revenue, contribution margin, adjusted EBITDA and GAAP profitability, while raising its FY2016 outlook. Over the past year, Lending Club has facilitated $8.4 billion in loans to consumers and small businesses and doubled its revenue.

“Our confidence is bolstered again by Lending Club’s performance in 2015 and causes us to raise our outlook for 2016,” said Lending Club founder and CEO Renaud Laplanche. “We have earned the trust of 1.4 million customers, have considerable room to grow our existing products, and intend to continue to expand both our product line and addressable population going forward. Our operating efficiency reached record levels in Q4, and our credit performance, marketing efficiency and customer satisfaction remain very strong. Accordingly, we are raising Lending Club’s 2016 revenue guidance to $730 to $740 million, or 72 percent top line growth, and adjusted EBITDA guidance to $130 to $145 million. We believe there is tremendous long term potential that is not reflected in Lending Club shares and so we are taking this opportunity to use a small portion of our cash to buy back up to $150 million worth of our stock.”

Fourth Quarter 2015 Financial Highlights

• Originations – Loan originations in the fourth quarter of 2015 were $2.58 billion, compared to $1.41 billion in the same period last year, an increase of 82% year-over-year. The LendingClub platform has now facilitated over $16.0 billion in loans since inception.


• Operating Revenue – Operating revenue in the fourth quarter of 2015 was $134.5 million, compared to $69.6 million in the same period last year, an increase of 93% year-over-year. Operating revenue as a percent of originations, or revenue yield, was 5.21% in the fourth quarter, up from 4.92% in the prior year.


• Adjusted EBITDA – Adjusted EBITDA was $24.6 million in the fourth quarter of 2015, compared to $7.9 million in the same period last year. As a percent of operating revenue, Adjusted EBITDA margin increased to 18.3% in the fourth quarter of 2015, up from 11.4% in the prior year.


• Net Income – GAAP net income was $4.6 million for the fourth quarter of 2015, compared to net loss of $9.0 million in the same period last year. GAAP net income included $13.7 million of stock-based compensation expense during the fourth quarter of 2015, compared to $11.3 million in the prior year.