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The company recently announced that its auto refinance loans now cover 94% of the U.S. population, and borrowers have saved an average of $4,000 over the lives of their loans. “Auto is a key step in our vision to create a holistic customer experience that seamlessly integrates saving opportunities for our members across our product offerings,” Todd Denbo, SVP of Auto at LendingClub Bank, explained. Over the past year, LC’s growth trajectory has been impressive, with its new product launches and portfolio expansion. LC also reported solid revenue and earnings growth in its last reported quarter and raised its full-year guidance.
However, the stock has slumped 31.1% over the past month and is currently trading above its 200-day moving average but below its 50-day moving average. Recently, Federal Reserve Chairman Jerome Powell indicated plans to tighten the central bank’s monetary policy to combat rising inflation. Powell, who had stated that inflation is “transitory,” told U.S. lawmakers that “it’s probably a good time to retire that word.” However, analysts warn that raising interest rates up may lead to an economic slowdown. “The Fed’s new policy is highly nonlinear, creating a dangerous endgame,” Mark Cabana, Bank of America’s head of U.S. rates strategy, said in a note. So, the uncertainty tied to the policy changes could hinder LC’s near-term prospects.
