Lendingclub Corp. (LC) has disclosed a new risk, in the Regulation category.
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Lendingclub Corp faces a business risk concerning the transparency and timing of stock trades by its executives. The adoption of Rule 10b5-1 Trading Plans by directors, such as Erin Selleck, with plans to sell up to 8,869 shares, could raise concerns among investors regarding potential insider knowledge influencing these trades. Although these arrangements are intended to comply with affirmative defense conditions, they also highlight the need for meticulous monitoring to ensure that such transactions are not perceived as opportunistic, which could affect investor trust and the company’s reputation. No other directors or executive officers have reported changes to their trading plans, which may mitigate concerns to an extent.
Overall, Wall Street has a Strong Buy consensus rating on LC stock based on 4 Buys and 1 Hold.
To learn more about Lendingclub Corp.’s risk factors, click here.
