Is LendingClub Corp (LC) A Good Stock To Buy?

Seeing as LendingClub Corp (NYSE:LC) has experienced flat sentiment from hedge fund managers, it’s safe to say that there lies a certain “tier” of funds that decided to sell off their full holdings last quarter. Intriguingly, Glen Kacher’s Light Street Capital said goodbye to the biggest position of the 700 funds monitored by Insider Monkey, comprising about $17 million in stock, and Jerome L. Simon’s Lonestar Capital Management was right behind this move, as the fund dropped about $7.3 million worth of shares. These moves are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as LendingClub Corp (NYSE:LC) but similarly valued. These stocks are Government Properties Income Trust (NYSE:GOV), Liberty Tripadvisor Holdings Inc (NASDAQ:LTRPA), KLX Inc (NASDAQ:KLXI), and Coeur d’Alene Mines Corporation (NYSE:CDE). This group of stocks’ market valuations resemble LC’s market valuation.

As you can see these stocks had an average of 19.75 hedge funds with bullish positions and the average amount invested in these stocks was $320 million. That figure was $238 million in LC’s case. Coeur d’Alene Mines Corporation (NYSE:CDE) is the most popular stock in this table. On the other hand Government Properties Income Trust (NYSE:GOV) is the least popular one with only 6 bullish hedge fund positions. LendingClub Corp (NYSE:LC) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on recently. In this regard CDE might be a better candidate to consider for a long position.

Disclosure: None