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LendingClub Stock Jumps on Record Quarter, Surprise Profit

Shares of LendingClub were up more than 50% in afternoon trading Thursday.
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Shares of online lending company LendingClub Corp.  (LC) - Get Free Report jumped Thursday after analysts upgraded the company following its second-quarter surprise profit and strong revenue report. 

Analysts at Wedbush raised the company's price target to $33.50 from $25 per share while Credit Suisse raised its target to $28 from $16 per share. 

LendingClub shares jumped 55% to $25.11 in Thursday afternoon trading after reporting its second-quarter results following the closing bell Wednesday. 

"Our first full quarter operating a digital bank was the most profitable quarter in LendingClub's history," said CEO Scott Sanborn. "This is the beginning of a dramatically enhanced earnings trajectory for the business."

The San Francisco-based company raised its full year revenue guidance by 45% and revenue grew 93% sequentially in the quarter. 

The company reported earnings of 9 cents per share after reporting a loss of 60 cents per share in the same period a year ago. Analysts were expecting a net loss of 40 cents per share. 

Revenue for the quarter jumped to $204 million from $44 million a year ago, also topping analyst consensus estimates of $130 million, according to FactSet. 

"Our transformation is fueled by our competitive advantages, which include our 3.5 million-plus members, deep data capabilities, marketplace model as well as our more efficient operating platform," Sanborn said. 

Separately, the company also announced that it settled a previously disclosed Federal Trade Commission investigation with a scheduled $18 million payment for consumer remediation. The company says that the payment is already accounted for in prior releases.