WisdomTree (NYSE:WT) Cut to Hold at Zacks Research

Key Points

• Zacks Research downgraded WisdomTree from “strong buy” to “hold,” though the broader analyst consensus remains “Moderate Buy,” with five Buy ratings and three Hold ratings and a $25.72 average price target.
• WisdomTree was trading at $21.29, below its 52-week high of $25.91. The company’s latest quarterly results exceeded expectations, with $0.31 in earnings per share versus the $0.26 consensus and revenue of $177.16 million.
• Institutional ownership stands at 78.64%, with major investors including BlackRock and Azora Capital taking new stakes. Separately, COO R. Jarrett Lilien sold 30,000 shares for approximately $736,800.

WisdomTree (NYSE:WT - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Tuesday, Zacks reports.

WT has been the subject of several other reports. Weiss Ratings raised WisdomTree from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 8th. Morgan Stanley cut their price target on WisdomTree from $27.00 to $25.00 and set an "equal weight" rating on the stock in a report on Wednesday. Craig Hallum raised their price target on WisdomTree from $24.00 to $29.00 and gave the stock a "buy" rating in a report on Friday, October 2nd. Wall Street Zen lowered WisdomTree from a "buy" rating to a "hold" rating in a research report on Saturday, October 24th. Finally, Oppenheimer upped their price objective on WisdomTree from $22.00 to $27.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 26th. Five research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $25.72.

WisdomTree Trading Up 0.3%

NYSE WT opened at $21.29 on Tuesday. WisdomTree has a one year low of $10.69 and a one year high of $25.91. The company has a 50-day simple moving average of $23.18 and a 200-day simple moving average of $18.96. The company has a debt-to-equity ratio of 2.53, a quick ratio of 2.73 and a current ratio of 3.00. The firm has a market capitalization of $3.23 billion, a PE ratio of 40.95 and a beta of 1.17.

WisdomTree (NYSE:WT - Get Free Report) last announced its quarterly earnings data on Friday, July 31st. The company reported $0.31 earnings per share for the quarter, beating analysts' consensus estimates of $0.26 by $0.05. The business had revenue of $177.16 million during the quarter, compared to the consensus estimate of $170.62 million. WisdomTree had a net margin of 13.27% and a return on equity of 39.12%. The company's revenue for the quarter was up 57.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.18 EPS. On average, equities analysts forecast that WisdomTree will post 1.20 earnings per share for the current year.

Insider Activity at WisdomTree

In other news, COO R. Jarrett Lilien sold 30,000 shares of WisdomTree stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $24.56, for a total transaction of $736,800.00. Following the sale, the chief operating officer owned 1,080,245 shares of the company's stock, valued at approximately $26,530,817.20. The trade was a 2.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 10.10% of the company's stock.

Hedge Funds Weigh In On WisdomTree

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in WisdomTree during the 2nd quarter valued at $326,513,000. Azora Capital LP acquired a new position in WisdomTree during the 2nd quarter worth $104,698,000. Arrowstreet Capital Limited Partnership grew its stake in shares of WisdomTree by 41.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 4,134,430 shares of the company's stock worth $60,197,000 after purchasing an additional 1,205,097 shares in the last quarter. Bank of America Corp DE grew its stake in shares of WisdomTree by 556.4% in the first quarter. Bank of America Corp DE now owns 2,327,389 shares of the company's stock worth $33,887,000 after purchasing an additional 1,972,847 shares in the last quarter. Finally, Principal Financial Group Inc. increased its holdings in shares of WisdomTree by 101.8% during the first quarter. Principal Financial Group Inc. now owns 2,009,556 shares of the company's stock valued at $29,259,000 after purchasing an additional 1,013,658 shares during the period. 78.64% of the stock is owned by institutional investors.

About WisdomTree

WisdomTree, Inc is a financial services company that sponsors and manages exchange-traded funds (ETFs) and exchange-traded products. Its offerings provide access to equities, fixed income, currencies, commodities, alternatives and other asset classes through rules-based investment strategies designed for individual and institutional investors.

The company also provides model portfolios, separately managed accounts and other investment solutions for financial professionals. In addition, WisdomTree has developed products and capabilities related to digital assets and blockchain-enabled financial services, subject to applicable regulatory requirements.

Founded in 1985 and formerly known as WisdomTree Investments, the company launched its first ETFs in 2006 and became known for dividend-focused and fundamentally weighted strategies.

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