IB Net Payout Yields Model

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, LendingClub (NYSE:LC) 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 opportunity for an expanding banking marketplace. My investment thesis remains ultra-Bullish on the stock with the dip back below $20.

Read the full article on Seeking Alpha. 

Disclosure: Long LC. Please review the disclaimer page for more details. 

Update - Apr. 27

The market didn't want to listen, but LendingClub reported the results warranting a much higher stock price. 

-Q1 GAAP EPS of $0.39 beats by $0.15.
-Revenue of $289.5M (+173.6% Y/Y) beats by $27.07M.
-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.

  • Outlook:
  • Q2: Total revenue $295M to $305M
  • 2022 Total revenue $1.15B to $1.25B


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