Lending Club (LC) Basing at Post-Earnings VWAP, Set for Run at Recent Highs
Lending Club (LC) nice consolidation recently of the strong earnings move higher and starting to work out of a multi-week base today above $29 with room back to $32. The broader range targets a measured move to $38-$40. LC is back at VWAP from the earnings day and holding up well despite the broader market pressure recently. RSI has pulled back to 50 and starting to emerge out of a tight range while MACD has pulled back to the zero line and curling higher, ‘ready to run.’ LC has seen bullish flow recently including buyers in the Jan. 2024 and Jan. 2023 ITM calls in size. LC has been a transformation story in 2021 after their acquisition of Radius Bank which helped change its business model and strategy away from peer-to-peer borrowing and towards more traditional financing. LC crushed estimates in Q2 with loan origination volumes of $2.7B vs guidance of $1.7B to $1.9B driven by new customer adds, higher LTV, and a more favorable macro environment.