Wealthfront (NASDAQ:WLTH) Given New $12.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo raised Wealthfront’s price target to $12.00 from $11.50 and maintained an “overweight” rating, implying approximately 14.67% upside from the stock’s $10.46 price.
• Analyst sentiment is mixed: five analysts rate the stock a Buy, four a Hold, and one a Sell, resulting in an overall “Hold” consensus and an average price target of $12.36.
• Wealthfront exceeded quarterly earnings expectations with EPS of $0.10 versus a $0.09 estimate and revenue of $91.87 million, but it remains unprofitable with a negative net margin of 19.42%; insiders sold $2.8 million of shares over the past 90 days.

Wealthfront (NASDAQ:WLTH - Get Free Report) had its price target boosted by stock analysts at Wells Fargo & Company from $11.50 to $12.00 in a research note issued on Tuesday, Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Wells Fargo & Company's price target suggests a potential upside of 14.67% from the company's current price.

Several other research analysts have also recently commented on WLTH. Weiss Ratings reiterated a "sell (d)" rating on shares of Wealthfront in a research note on Friday, October 2nd. Wall Street Zen upgraded shares of Wealthfront from a "sell" rating to a "hold" rating in a research note on Saturday, July 18th. Royal Bank Of Canada cut their price objective on Wealthfront from $13.00 to $11.00 and set an "outperform" rating on the stock in a research note on Thursday, September 10th. Keefe, Bruyette & Woods lowered their price objective 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. Finally, The Goldman Sachs Group reiterated a "neutral" rating and issued a $11.00 target price on shares of Wealthfront in a research note on Wednesday, October 7th. Five research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $12.36.

Wealthfront Price Performance

WLTH traded up $0.03 during trading hours on Tuesday, reaching $10.46. 122,189 shares of the stock traded hands, compared to its average volume of 1,795,372. The firm's fifty day simple moving average is $10.20 and its two-hundred day simple moving average is $9.67. The company has a market cap of $1.63 billion and a price-to-earnings ratio of -11.28. Wealthfront has a fifty-two week low of $7.20 and a fifty-two week high of $14.88.

Wealthfront (NASDAQ:WLTH - Get Free Report) last released 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 for the quarter. Wealthfront had a negative net margin of 19.42% and a negative return on equity of 14.62%. The firm's revenue for the quarter was up .9% on a year-over-year basis. On average, research analysts predict that Wealthfront will post 0.37 earnings per share for the current year.

Insider Buying and Selling at Wealthfront

In other news, CTO Julien Wetterwald sold 26,138 shares of the firm's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $10.10, for a total transaction of $263,993.80. Following the completion of the sale, the chief technology officer directly owned 696,525 shares of the company's stock, valued at $7,034,902.50. This trade represents a 3.62% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Lauren Lin sold 4,574 shares of the stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $10.10, for a total value of $46,197.40. Following the completion of the transaction, the insider owned 171,816 shares of the company's stock, valued at $1,735,341.60. This trade represents a 2.59% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 270,688 shares of company stock valued at $2,796,816 over the last 90 days. Insiders own 27.36% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in WLTH. BlackRock Inc. acquired a new stake in Wealthfront during the 2nd quarter valued at $74,766,000. Renaissance Technologies LLC acquired a new stake in shares of Wealthfront during the 1st quarter valued at about $1,622,000. Bank of America Corp DE lifted its stake in Wealthfront by 1,461.0% in the first quarter. Bank of America Corp DE now owns 743,163 shares of the company's stock valued at $6,874,000 after acquiring an additional 695,555 shares during the last quarter. Southpoint Capital Advisors LP bought a new stake in Wealthfront in the first quarter worth $12,950,000. Finally, PEAK6 LLC bought a new stake in shares of Wealthfront during the 2nd quarter worth about $2,012,000.

About Wealthfront

Wealthfront, Inc NASDAQ: WLTH is a digital wealth management and financial services company that provides automated investing, cash management and financial planning tools through an online platform. Its services are designed to help individuals manage savings and investments with limited reliance on traditional in-person financial advisers.

The company's investment offerings include diversified, professionally managed portfolios, automated portfolio rebalancing and tax-focused features such as tax-loss harvesting and direct indexing, where available.

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