LC: Share Repurchases Will Drive Stronger Returns Through 2026

Analysts have nudged their price target on LendingClub slightly higher to approximately 22.18 dollars from around 21.91 dollars, citing modest improvements in fair value assumptions and expectations for a marginally higher future earnings multiple.

What's in the News

• LendingClub Corporation has launched a share repurchase program authorizing the buyback of up to 100 million dollars of common stock, with the program running through December 31, 2026 (company announcement).
• The Board of Directors approved the share repurchase plan on November 4, 2025, signaling confidence in the company’s valuation and long term strategy (board authorization).
• LendingClub issued earnings guidance for the fourth quarter of 2025, projecting pre provision net revenue of 90 million to 100 million dollars, an increase of approximately 21 percent to 35 percent compared with the prior period (earnings guidance).
• The company is hosting an Analyst and Investor Day to outline its strategic vision, highlight product innovations, and review recent financial performance (Analyst and Investor Day).

Valuation Changes

• The fair value estimate has risen slightly to approximately 22.18 dollars from about 21.91 dollars, reflecting a modest upward revision in intrinsic value.
• The discount rate has increased marginally from roughly 7.81 percent to about 7.84 percent, implying a slightly higher required return on equity.
• Revenue growth has edged down fractionally from around 2.65 percent to approximately 2.65 percent, indicating a virtually unchanged long term growth outlook.
• The net profit margin has decreased very slightly from about 23.50 percent to roughly 23.49 percent, signaling a minimal adjustment in expected profitability.
• The future P/E has risen modestly from roughly 10.08 times to about 10.22 times, suggesting a small increase in the assumed valuation multiple on forward earnings.