NEW YORK (TheStreet) -- Shares of LendingClub (LC) - Get Report are advancing 4.19% to $4.48 in pre-market trading on Tuesday after the company named Scott Sanborn its new CEO and said it would cut 179 jobs.
Sanborn replaces LendingClub's founder and CEO Renaud Laplanche who unexpectedly resigned last month.
Additionally, the company expects loan originations in the second quarter to be about one-third lower than in the first quarter, according to a statement.
LendingClub, which had 1,382 employees at the end of 2015, said it will take a charge of $3 million in the second quarter related to the job cuts, Reuters said.
Shares have plunged about 40% since Laplanche's departure, Reuters added.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D- on the stock.
This is driven by a few notable weaknesses, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and generally high debt management risk.
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