NEW YORK (TheStreet) -- Shares of LendingClub (LC - Get Report) are slumping 1.13% to $4.37 in late-afternoon trading on Thursday, even though the online lender has held talks with the hedge funds Och-Ziff, Soros and Third Point about deals to fund as much as $5 billion in loans, sources told the Wall Street Journal.
Such a deal would cover a large part of LendingClub's annual volume, which was $8 billion in 2015.
A deal could help restore confidence in LendingClub's ability to pair big buyers of loans with small borrowers, according to analysts, the Journal adds. The company has been under pressure since founder Renaud Laplanche was forced to resign last month.
LendingClub shares are down roughly 4% since Monday, partly due to a Tuesday announcement that it postponed its annual meeting by three weeks since it was "not yet in a position to provide its stockholders a complete report on the state of its business." The company also has disclosed data points that some analysts say indicate slowing volume.
"It's crucial to understand what type of [new lending] they're capable of funding," Jefferson Harralson, analyst at Keefe, Bruyette & Woods, told the Journal. "The market abhors a vacuum, and right now we have a major information vacuum."
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 generally high debt management risk.
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.