Embattled financial technology company LendingClub saw shares recover on Tuesday, after a slew of leadership changes and a wider-than-expected loss pressured shares Monday night.
Shares were seen down 3 percent after hours on Monday, but lifted to trade more than 1 percent higher on Tuesday.
"With roughly half the market cap in cash and equivalents, the stock may rebound sharply with any signs of stabilization," wrote Canaccord Genuity analyst Michael Graham, who lowered his price target on LendingClub on Tuesday and said he expected continued choppiness.
LendingClub reported on Monday a loss of 9 cents per share, excluding items, on sales of $102 million in the second quarter. Analysts had expected a loss of 2 cents per share on revenues of $101 million, according to a Thomson Reuters consensus estimate.
Chief Financial Officer Carrie Dolan also announced she would step down to pursue a new opportunity, to be replaced in the interim by Bradley Coleman.
"Carrie was integral to Lending Club's maturity and growth over the past six years," CEO Scott Sanborn said in a statement. "She approached us early this year about planning a transition, and in May the Board and I asked her to postpone her plans until we could navigate recent events. I and the Board want to thank her for her leadership, commitment and dedication particularly over the last several months, and wish her well in her next endeavor."
Sanborn became CEO of LendingClub at a time of turmoil, after founder Renaud Laplanche was forced to resign as CEO in May due to the improper selling of certain loans. LendingClub's practices have drawn regulatory scrutiny, and the stock has tumbled more than 65 percent over the past year.
The quarterly loss came largely due to an impairment charge and higher operating costs, while loan originations, a key metric indicating the volume of loans processed by the company, rose 2.3 percent to $1.96 billion. The company also added two new board members: Sanborn, and Timothy Mayopoulos, president and CEO of Fannie Mae.
"There are some positive signs here and in recent announcements," wrote Stifel analyst Scott Devitt. "We, however, believe that regaining investor confidence in the platform and its ability to revive growth could take some time."
— Reporting by Reuters.
Correction: This story has been updated to reflect that after several years with LendingClub, Scott Sanborn was named acting CEO, and then permanent CEO, after Renaud Laplanche resigned.