Key Points
- CTO Julien Wetterwald sold 26,231 Wealthfront shares at an average price of $10.73, generating $281,458.63. The sale reduced his holdings by 3.47% and was made to cover tax withholding on vested equity awards.
- Wealthfront reported quarterly EPS of $0.10, exceeding the $0.09 analyst estimate, with revenue of $91.87 million. However, revenue grew only 0.9% year over year, while the company continued to post negative net margins and return on equity.
- Analysts maintain a mixed outlook, with Wealthfront carrying a consensus “Hold” rating and a $12.00 target price. The stock opened at $10.10, while recent insider selling and modest profitability remain investor concerns.
Wealthfront (NASDAQ:WLTH - Get Free Report) insider Lauren Lin sold 4,995 shares of Wealthfront stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $10.19, for a total value of $50,899.05. Following the transaction, the insider owned 176,390 shares of the company's stock, valued at $1,797,414.10. The trade was a 2.75% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
Lauren Lin also recently made the following trade(s):
- On Tuesday, September 15th, Lauren Lin sold 16,117 shares of Wealthfront stock. The stock was sold at an average price of $10.73, for a total value of $172,935.41.
Wealthfront Trading Down 0.7%
NASDAQ WLTH opened at $10.10 on Friday. Wealthfront has a 12 month low of $7.20 and a 12 month high of $14.88. The stock's fifty day moving average price is $9.48 and its 200-day moving average price is $9.70. The stock has a market cap of $1.58 billion and a P/E ratio of -10.86.
Wealthfront (NASDAQ:WLTH - Get Free Report) last posted its quarterly earnings results on Wednesday, September 9th. The company reported $0.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.09 by $0.01. The firm had revenue of $91.87 million during the quarter. Wealthfront had a negative return on equity of 14.62% and a negative net margin of 19.42%.The firm's revenue was up .9% on a year-over-year basis. As a group, analysts forecast that Wealthfront will post 0.41 earnings per share for the current fiscal year.
Key Wealthfront News
Here are the key news stories impacting Wealthfront this week:
- Positive Sentiment: Platform assets rose 12% year over year to $99 billion in the fiscal second quarter and surpassed $100 billion by the end of August. Funded clients increased 14% to 1.51 million, reinforcing Wealthfront’s long-term growth potential. Wealthfront Tops $100 Billion in Platform Assets
- Positive Sentiment: Wealthfront reported quarterly earnings of $0.10 per share, exceeding the $0.09 analyst consensus, with revenue of $91.87 million. Analysts currently expect approximately $0.41 in earnings per share for the full year.
- Neutral Sentiment: The company’s asset and client growth has not yet translated into comparable financial growth: revenue increased only about 1% year over year, while Wealthfront continued to post a negative net margin and negative return on equity. This raises questions about the pace of margin improvement.
- Neutral Sentiment: Analyst sentiment remains mixed. Goldman Sachs maintained a neutral rating with a $10 target, while RBC and JPMorgan reduced their price targets to $11 and $12, respectively, but retained outperform or overweight ratings. The broader consensus is “Hold,” with a $12 target price.
- Negative Sentiment: Executives and other insiders disclosed roughly $1.34 million in combined stock sales, including transactions by the CFO, CTO, two vice presidents, another insider and a director. The sales could weigh on sentiment, although most were explicitly made for tax withholding and one occurred under a pre-arranged Rule 10b5-1 plan. Wealthfront Insider Sales
Institutional Inflows and Outflows
Hedge funds have recently bought and sold shares of the company. Index Venture Associates VI Ltd bought a new stake in Wealthfront during the fourth quarter valued at about $128,567,000. BlackRock Inc. bought a new position in shares of Wealthfront in the second quarter worth about $74,766,000. North Reef Capital Management LP boosted its stake in shares of Wealthfront by 135.2% in the first quarter. North Reef Capital Management LP now owns 2,885,257 shares of the company's stock worth $26,689,000 after acquiring an additional 1,658,624 shares during the period. Ieq Capital LLC purchased a new stake in shares of Wealthfront during the second quarter worth about $24,706,000. Finally, Southpoint Capital Advisors LP bought a new stake in Wealthfront during the 1st quarter valued at approximately $12,950,000.
Analysts Set New Price Targets
Several equities analysts recently issued reports on WLTH shares. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $10.00 price objective on shares of Wealthfront in a research report on Thursday, September 10th. Keefe, Bruyette & Woods cut their target price on shares of Wealthfront from $11.00 to $10.50 and set a "market perform" rating for the company in a research report on Monday, July 13th. Royal Bank Of Canada dropped their price target on Wealthfront from $13.00 to $11.00 and set an "outperform" rating on the stock in a research note on Thursday, September 10th. Wells Fargo & Company cut their price objective on Wealthfront from $12.00 to $11.50 and set an "overweight" rating for the company in a report on Tuesday, August 4th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Wealthfront in a research note on Monday, July 6th. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $12.00.
Get Our Latest Stock Analysis on Wealthfront
Wealthfront Company Profile
(
Get Free Report)
Wealthfront, Inc is a U.S.-based digital wealth management company that provides automated investing, financial planning and cash management services through an online platform and mobile applications. The company is designed to help individuals manage their finances with technology-driven tools and diversified investment portfolios.
Its offerings have included automated investment accounts, tax-efficient portfolio management, financial planning tools, high-yield cash management products and lending services.
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