Cathie Wood Fuels LendingClub Rally by Boosting ETF’s Stake
(Bloomberg) -- Cathie Wood is giving more fuel to the rally in LendingClub Corp.’s shares.
The stock gained 4.9% Tuesday, rising for a sixth day. The cumulative gain is the biggest since it went public almost seven years ago, after Wood’s Ark Investment Management reported increasing its stake in the online lending company.
The firm said it added 86,639 shares to its its actively traded ARK Fintech Innovation ETF Monday. That follows the purchase of about 228,500 shares last week.
Shares of LendingClub have been on a tear this year, rallying 70% and rebounding back from the slide triggered by the pandemic. In January, the company -- whose platform matches online lenders with borrowers -- surged after it received regulatory approvals to buy Radius Bancorp, which may help LendingClub return to profitability.
Analysts are staying cautious. LendingClub has one buy recommendation and five hold ratings with an average share price target of $12.60. That implies a 30% downside from Tuesday’s close.
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