Wealthfront (NASDAQ:WLTH) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Analysts have a consensus “Hold” rating on Wealthfront, with four buys, four holds and one sell among nine analysts. The average 12-month price target is $12.42, above the stock’s reported $9.01 opening price.
• Recent brokerages lowered their price targets, including RBC to $13, JPMorgan to $12 and Wells Fargo to $11.50, while maintaining favorable “outperform” or “overweight” ratings.
• Wealthfront reported quarterly revenue of $90.48 million, up 7.1% year over year, but earnings per share of $0.07 missed the $0.09 consensus estimate. Insiders sold 136,565 shares worth about $1.19 million over the past 90 days.

Shares of Wealthfront (NASDAQ:WLTH - Get Free Report) have been assigned an average recommendation of "Hold" from the nine analysts that are currently covering the company, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, four have assigned a hold rating and four have given a buy rating to the company. The average 12-month price objective among brokerages that have issued ratings on the stock in the last year is $12.4167.

Several research firms recently commented on WLTH. Royal Bank Of Canada cut their target price on shares of Wealthfront from $14.00 to $13.00 and set an "outperform" rating on the stock in a research report on Friday, June 5th. Wall Street Zen raised shares of Wealthfront from a "sell" rating to a "hold" rating in a research note on Saturday, July 18th. JPMorgan Chase & Co. lowered their target price on shares of Wealthfront from $13.00 to $12.00 and set an "overweight" rating for the company in a research note on Friday, June 5th. Wells Fargo & Company decreased their price target 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 reissued a "sell (d)" rating on shares of Wealthfront in a research note on Monday, July 6th.

Insiders Place Their Bets

In other news, CTO Julien Wetterwald sold 39,810 shares of the company's stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $8.46, for a total transaction of $336,792.60. Following the transaction, the chief technology officer owned 727,052 shares in the company, valued at approximately $6,150,859.92. This represents a 5.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Kal Iyer sold 45,772 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $8.92, for a total transaction of $408,286.24. Following the transaction, the vice president directly owned 254,269 shares in the company, valued at $2,268,079.48. This trade represents a 15.26% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 136,565 shares of company stock valued at $1,193,520 in the last ninety days. 27.36% of the stock is owned by corporate insiders.

Institutional Trading of Wealthfront

Large investors have recently added to or reduced their stakes in the stock. Renaissance Technologies LLC purchased a new stake in Wealthfront in the 1st quarter worth about $1,622,000. BlackRock Inc. bought a new stake in shares of Wealthfront in the second quarter valued at approximately $74,766,000. Bank of America Corp DE lifted its stake in shares of Wealthfront by 1,461.0% during the 1st quarter. Bank of America Corp DE now owns 743,163 shares of the company's stock valued at $6,874,000 after buying an additional 695,555 shares in the last quarter. Southpoint Capital Advisors LP bought a new position in Wealthfront in the 1st quarter worth approximately $12,950,000. Finally, Board of Trustees of The Leland Stanford Junior University bought a new stake in shares of Wealthfront during the 1st quarter valued at $1,928,000.

Wealthfront Stock Up 1.7%

Shares of WLTH stock opened at $9.01 on Thursday. The company's fifty day simple moving average is $9.26 and its 200-day simple moving average is $9.57. Wealthfront has a 12 month low of $7.20 and a 12 month high of $14.88. The firm has a market cap of $1.35 billion and a PE ratio of -8.75.

Wealthfront (NASDAQ:WLTH - Get Free Report) last posted its quarterly earnings results on Thursday, June 4th. The company reported $0.07 earnings per share for the quarter, missing analysts' consensus estimates of $0.09 by ($0.02). The company had revenue of $90.48 million during the quarter. The firm's quarterly revenue was up 7.1% on a year-over-year basis. On average, equities analysts predict that Wealthfront will post 0.4 earnings per share for the current fiscal year.

About Wealthfront

Wealthfront NASDAQ: WLTH is a technology-driven wealth management firm that provides automated investment services to individual investors. Operating as a robo-advisor, the company uses algorithms and software to construct and manage diversified portfolios largely composed of low-cost exchange-traded funds (ETFs). Its platform is geared toward long-term, goal-based investing with an emphasis on passive strategies, automated rebalancing and straightforward user experience delivered through web and mobile applications.

The company’s product suite includes automated portfolio management, tax-loss harvesting and goal-planning tools that help clients set and track financial objectives.

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