LendingClub: Strong Originations Amid Private Credit Meltdown Ahead Of Rebrand
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Gary Alexander33.71K FollowersFollow5ShareSavePlay(7min)CommentsSummaryLendingClub remains a compelling "Buy," bolstered by strong Q1 results and resilient credit metrics despite broader market fears.LC is delivering over 30% originations growth, supporting robust non-interest fee income and reinforcing its growth profile.Deposit growth, high-yield savings, and the rebrand to Happen Bank are reducing the cost of capital and enhancing net interest margins.LC trades at 11.3x FY26 P/E with 26% originations growth expected this year, offering value in a growth story. JHVEPhoto/iStock Editorial via Getty Images Alongside fears about the impacts of AI on software and the broader macroeconomy, the other major worry bubbling up in the stock market is fear of another broad credit default. Private credit funds have faced outflows due to concerns about their exposureThis article was written byGary Alexander33.71K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have a beneficial long position in the shares of LC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.