Form 4: LendingClub CEO Sells Shares Under Pre-Arranged Trading Plan

LendingClub CEO Scott Sanborn sold 5,250 shares of common stock for approximately $12.56 per share on July 3, 2025, as part of a pre-arranged Rule 10b5-1 trading plan.

Summary

• Scott Sanborn, CEO and Director of LendingClub Corp (LC), sold 5,250 shares of common stock.
• The transaction occurred on July 3, 2025.
• The shares were sold at a weighted-average price of $12.5585 per share, with individual trades ranging from $12.51 to $12.61.
• Following this transaction, Scott Sanborn beneficially owns 1,288,425 shares of LendingClub common stock.
• The sale was executed under a Rule 10b5-1 trading plan, established to diversify the Reporting Person's assets.
• The maximum number of shares that can be sold under this plan, inclusive of this transaction, represents 4.1% of Scott Sanborn's total equity interest in LendingClub, as disclosed in the company's Form 10-K for the period ending December 31, 2024.

Sentiment

Score: 6

Explanation: The transaction is a pre-scheduled sale under a 10b5-1 plan for asset diversification, which is a common practice and not indicative of a negative outlook on the company. The amount sold is a small percentage of the CEO's total holdings.

Positives

• The transaction was executed under a Rule 10b5-1 trading plan, indicating a pre-scheduled sale for asset diversification rather than a reaction to immediate company news.
• The amount sold (5,250 shares) represents a small fraction (4.1% of total equity interest under the plan) of the CEO's overall holdings, suggesting continued significant ownership.

Negatives

• A high-ranking insider, the CEO, sold shares, which can sometimes be interpreted as a lack of confidence, although the 10b5-1 plan mitigates this perception.

Risks

• Potential for negative market perception due to insider share sale, despite the existence of a Rule 10b5-1 plan.

Future Outlook

NA

Management Comments

• This transaction was effected pursuant to a Rule 10b5-1 trading plan (the "Plan") to diversify the assets of the Reporting Person.
• The Reporting Person hereby undertakes to provide upon request to the SEC staff, the Issuer or a security holder of the Issuer full information regarding the number of shares and prices at which the transactions were effected.

Industry Context

NA

Stakeholder Impact

• Shareholders: May perceive the sale as a slight negative, but the 10b5-1 plan mitigates concerns about management confidence. The CEO retains a significant stake.

Key Dates

Recommendation

Keywords

LendingClub, LC, Scott Sanborn, CEO, Director, Form 4, Insider Trading, Share Sale, 10b5-1 Plan, Common Stock