Recent insider trends for LendingClub Corporation (NYSE:LC) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of LC, the data has some interesting implications for where the stock might be headed.
Institutions own 85.48% of LendingClub Corporation (LC)’s shares. The total value of these holdings, in millions, is $1,330. Among active positions in the latest quarter, 86 holders increased their positions by a total of 44.07 million shares, 89 holders decreased the positions by a total of 46.69 million shares, and 35 holders held their positions. This works out to a net decrease in ownership of 2.62 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 28 holders initiated new positions by a total of 10.72 million shares and 43 holders exited their positions by a total of 19.61 million shares. This nets out to a decrease of 8.89 million shares and is another bearish sign for LC.
In the last three months, insiders executed a total of 13 trades. 4 of these were buys and 9 were sells. Insider ownership increased by a total of 27.44 million shares, which suggests that LC’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 18 buys and 48 sells, and ownership increased by a net of 26.69 million shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. LendingClub Corporation (NYSE:LC)’s short interest is 30.11 million shares, or 7.55% of the float. This represents a decrease of -2% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for LC. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that LC is a Weak sell, which implies that LC is expected to underperform the market based on prior trading patterns.
Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that LendingClub Corporation (NYSE:LC) is overvalued.