NEW YORK (TheStreet) -- Shares of LendingClub (LC) - Get Report are declining by 2.92% to $4.32 in mid-morning trading on Thursday, after a fund that invests in the online lender's consumer loans gained just 0.12% in April, the Wall Street Journal reports.
The performance was the fund's second-worst in its five-year history. The portfolio, Broad Based Consumer Credit (Q) Fund, has $825 million in assets under management and is headed by LendingClub unit LC Advisors.
The disappointing returns underscore the challenges facing LendingClub following CEO Renaud Laplanche's resignation. Laplanche left the company after the board discovered its employees had falsified data on certain loans sold to an investment bank.
Some loan buyers lowered their purchasing after Laplanche departed, the Journal notes. A central focus of ongoing discussions between LendingClub and loan buyers regarding potential new purchases will likely be the returns generated by holding LendingClub loans.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D-.
LendingClub's weaknesses include its generally disappointing historical performance in the stock itself and poor profit margins.
You can view the full analysis from the report here: LC
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 article's author.