Key Points
- Wealthfront insider Lauren Lin sold 4,574 shares for approximately $46,197 at $10.10 per share, reducing her holdings by 2.59% to 171,816 shares. The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan, following additional sales earlier in the week.
- Wealthfront reported quarterly earnings of $0.10 per share, narrowly beating the $0.09 consensus, while revenue reached $91.87 million. However, revenue grew only 0.9% year over year, and the company posted a negative 19.42% net margin and negative 14.62% return on equity.
- Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $12.00. Recent target cuts from several firms contrast with Wealthfront’s growth in platform assets and funded clients.
Wealthfront (NASDAQ:WLTH - Get Free Report) insider Lauren Lin sold 4,574 shares of the business's stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $10.10, for a total value of $46,197.40. Following the sale, the insider owned 171,816 shares of the company's stock, valued at approximately $1,735,341.60. This represents a 2.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Lauren Lin also recently made the following trade(s):
- On Wednesday, September 16th, Lauren Lin sold 4,995 shares of Wealthfront stock. The stock was sold at an average price of $10.19, for a total value of $50,899.05.
- 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 Price Performance
Shares of NASDAQ WLTH opened at $10.10 on Friday. The stock's fifty day moving average price is $9.49 and its two-hundred day moving average price is $9.71. Wealthfront has a one year low of $7.20 and a one year high of $14.88. The firm has a market cap of $1.58 billion and a price-to-earnings ratio of -10.86.
Wealthfront (NASDAQ:WLTH - Get Free Report) last posted its earnings results on Wednesday, September 9th. The company reported $0.10 earnings per share for the quarter, topping analysts' consensus estimates of $0.09 by $0.01. The company 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%.Wealthfront's quarterly revenue was up .9% compared to the same quarter last year. On average, equities analysts anticipate that Wealthfront will post 0.41 earnings per share for the current fiscal year.
Analyst Ratings Changes
A number of brokerages have issued reports on WLTH. Wells Fargo & Company decreased their target price on shares of Wealthfront from $12.00 to $11.50 and set an "overweight" rating on the stock in a research report on Tuesday, August 4th. The Goldman Sachs Group reiterated a "neutral" rating and issued a $10.00 price target on shares of Wealthfront in a research note on Thursday, September 10th. Keefe, Bruyette & Woods lowered their price objective on Wealthfront from $11.00 to $10.50 and set a "market perform" rating on the stock in a research note on Monday, July 13th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Wealthfront in a report on Monday, July 6th. Finally, Royal Bank Of Canada cut their target price on Wealthfront from $13.00 to $11.00 and set an "outperform" rating for the company in a research report on Thursday, September 10th. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Wealthfront presently has a consensus rating of "Hold" and an average price target of $12.00.
Get Our Latest Stock Report on Wealthfront
Key Headlines Impacting Wealthfront
Here are the key news stories impacting Wealthfront this week:
- Positive Sentiment: Wealthfront’s platform assets increased 12% year over year to $99 billion in the second quarter and exceeded $100 billion by the end of August. Funded clients rose 14% to 1.51 million, supporting the company’s long-term growth story. Wealthfront Tops $100 Billion in Platform Assets
- Positive Sentiment: Recent quarterly earnings modestly exceeded expectations, with adjusted earnings of $0.10 per share versus the $0.09 consensus and revenue of $91.87 million. Institutional interest also remains notable, with new or increased positions reported by firms including Index Ventures, BlackRock and North Reef Capital.
- Neutral Sentiment: Growth in assets and clients has not yet translated into strong financial expansion: revenue rose only about 1% year over year, while Wealthfront continues to report a negative net margin of 19.42% and negative return on equity of 14.62%. Investors are likely focused on whether scale can improve profitability.
- Neutral Sentiment: Analyst views remain cautious. Goldman Sachs maintained a neutral rating with a $10 target, while RBC lowered its target to $11 but retained an outperform rating. The broader consensus is “Hold,” with an average target near $12, suggesting limited near-term conviction.
- Negative Sentiment: Multiple insiders sold shares, including CFO Alan Imberman, CTO Julien Wetterwald, VP Kal Iyer and insider Lauren Lin. The latest reported transactions totaled roughly $1.35 million, including the CFO’s sale of 76,540 shares and the VP’s sale of 26,738 shares. These sales may pressure sentiment, although the transactions were conducted under pre-arranged Rule 10b5-1 plans. Wealthfront Insider Sales
- Negative Sentiment: Additional insider sales over the preceding days were primarily disclosed as transactions to cover tax withholding obligations tied to vested equity awards. While less bearish than discretionary selling, the repeated selling pattern remains a potential overhang for WLTH.
Institutional Inflows and Outflows
Several institutional investors have recently added to or reduced their stakes in WLTH. Royal Bank of Canada bought a new stake in Wealthfront during the first quarter worth $27,000. Strs Ohio bought a new position in shares of Wealthfront in the 1st quarter valued at $56,000. Squarepoint Ops LLC acquired a new position in shares of Wealthfront during the 2nd quarter worth $90,000. Arizona State Retirement System acquired a new position in shares of Wealthfront during the 2nd quarter worth $102,000. Finally, AXQ Capital LP bought a new stake in shares of Wealthfront during the 2nd quarter worth $105,000.
About Wealthfront
(
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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