Here’s Why LendingClub (LC) Stock is Gaining Today

NEW YORK (TheStreet) -- Shares of LendingClub (LC) - Get Report are rising 5.54% to $3.90 late Friday afternoon as the company said it is financially viable and continues to make and service loans, Bloomberg reports.

The San Francisco-based online marketplace lender's stock has tumbled nearly 50% since the unexpected resignation of its CEO last week.

"Let me assure you that we are in a strong financial position with a substantial amount of cash and securities on our balance sheet -- $868 million," acting CEO Scott Sanborn wrote in an e-mail to investors late yesterday who buy the company's loans, "We plan to be around for many years to come."

But LendingClub's loan investors "may not receive full amount of payments due" or could see delayed payments if it goes out of business, according to the company's website, CNBC.com notes.

The website says LendingClub has a successor servicing agreement with a third party in the instance that it goes out of business.

Sanborn said in the email that the performance of loans originated from LendingClub remain "robust."

"We continue to service and process borrower payments just like we always have, and the interest and principal payments that borrowers make will continue to be passed on to you just as they were before," he said.

On May 9, the company's founder and CEO Renaud Laplanche resigned after an internal review of a failed loan sale and after he revealed a stake in an external fund, Bloomberg said.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D- on the stock.

The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and poor profit margins.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: LC