Digital marketplace bank LendingClub’s (LC) shares skyrocketed earlier this year, fueled by the ‘fintech revolution.’ However, the stock has retreated more than 30% in price over the past month and is currently trading at less than $30. However, LC’s shares look overvalued at their current price level. Furthermore, the Fed’s policy changes could foster uncertainty in the company’s near-term prospects. Is it wise to buy LC shares right now? Continue reading. The leading digital marketplace bank LendingClub Corporation in San Francisco (NYSE:), operates via its subsidiaries LendingClub Bank (the Bank) and National Association (the Bank). They offer a variety of financial services and products in the U.S. using a technology-driven platform. Fintech solutions adoption was accelerated worldwide by the COVID-19 epidemic and subsequent lockdowns. The significant shift towards contactless payments and other digital payment options has helped LC to grow significantly. The stock soared earlier in the year, thanks to industry tailwinds. LC shares have gained 202% in price over the past year and 142% year-to-date to close yesterday’s trading session at $25.55.

Recent announcements by the bank revealed that their auto refinance loans now serve 94% of America’s population. Borrowers have saved on average $4,000 during the life of their loans. “Auto is a key step in our vision to create a holistic customer experience that seamlessly integrates saving opportunities for our members across our product offerings,” Todd Denbo, SVP of Auto at LendingClub Bank, explained. Over the past year, LC’s growth trajectory has been impressive, with its new product launches and portfolio expansion. LC reported strong revenue growth and earnings growth during its most recent quarter, and increased its guidance for the full year.

The stock is down 31.1% in the last month. It currently trades above its 200-day moving mean but below its 50 day moving average. Recently, Federal Reserve Chairman Jerome Powell indicated plans to tighten the central bank’s monetary policy to combat rising inflation. Powell, who had stated that inflation is “transitory,” told U.S. lawmakers that “it’s probably a good time to retire that word.” However, analysts warn that raising interest rates up may lead to an economic slowdown. “The Fed’s new policy is highly nonlinear, creating a dangerous endgame,” Mark Cabana, Bank of America’s head of U.S. rates strategy, said in a note. So, the uncertainty tied to the policy changes could hinder LC’s near-term prospects.

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