LC Stock Price Increases 26.16%: Why It Happened

By Amit Chowdhry ● Jan 2, 2021
  • The stock price of LendingClub Corp (NYSE: LC) increased by 26.16% as it went from a previous close of $8.37 to $10.56 per share. This is why it happened.

The stock price of LendingClub Corp (NYSE: LC) — a company that provides unsecured personal loans —  increased by 26.16% as it went from a previous close of $8.37 to $10.56 per share. The main trigger for the stock price increase was due to the Office of the Comptroller of the Currency (OCC) approval of LendingClub’s acquisition of online banking operator Radius Bancorp for $185 million in cash-and-stock. The deal was originally announced in February 2020.

There is still another major step required for the deal to be finalized. It has to be approved by the Federal Reserve. But the approval from the OCC is a good sign for the company.

Once the deal closes, LendingClub is planning to launch a service called LendingClub Bank.

“With this conditional approval, we have completed another important milestone in our journey to become the only full-spectrum fintech marketplace bank and the first neobank that will be publicly traded in the U.S.,” said a LendingClub spokesperson via American Banker. “We feel good about the progress we have made.”

After the announcement was made, Wedbush analyst Henry Coffey had upgraded his price target for the company to $14 and also issued a “Buy” rating on the shares.