LendingClub: Big Upside Ahead
- LendingClub has fallen back to mid-2021 levels despite boosting expectations dramatically in the last year.
- The fintech is only now working on expanding beyond a digital marketplace focused mostly on credit card refinancing.
- The stock is cheap with an EV of $1 billion while conservative net income is targeted at $140 million.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
Despite great earnings reports, () has pulled back to mid-2021 levels before some big earnings beats. The fintech is a far different business now with the digital banking license creating the opportunityinvestment thesis
Q1 GAAP EPS of $0.39 .
-Revenue of $289.5M (+173.6% Y/Y).
-Recurring stream of net interest income grew 20% sequentially to $99.7 million and increased 439% year-over-year.
-LendingClub Bank's net interest margin increased sequentially to 8.6% from 8.3% and was up from 3.3% a year earlier, primarily reflecting growth in personal loans which generate a higher yield.