Wealthfront (WLTH) - What Are Investment Firms Thinking About This Stock?

Key Points

• Analysts have a consensus “Hold” rating on Wealthfront, with five buys, four holds and one sell. The average 12-month price target is $12.29.
• Wealthfront recently traded at $11.20 and reported quarterly EPS of $0.10, beating estimates by $0.01, while revenue reached $91.87 million. However, the company remains unprofitable, with a negative net margin of 19.42%.
• Insiders sold 270,688 shares worth approximately $2.8 million in the last quarter, while institutional interest increased, including a new $74.8 million stake from BlackRock and a 135.2% position increase by North Reef Capital.

Shares of Wealthfront (NASDAQ:WLTH - Get Free Report) have received a consensus recommendation of "Hold" from the ten analysts that are covering the company, Marketbeat.com reports. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and five have given a buy rating to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $12.29.

A number of brokerages recently weighed in on WLTH. Keefe, Bruyette & Woods dropped 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. Weiss Ratings reiterated a "sell (d)" rating on shares of Wealthfront in a report on Friday, October 2nd. The Goldman Sachs Group reiterated a "neutral" rating and issued a $11.00 price target on shares of Wealthfront in a report on Wednesday, October 7th. Needham & Company LLC reissued a "buy" rating and set a $13.00 price objective on shares of Wealthfront in a report on Wednesday, October 7th. Finally, Wall Street Zen upgraded Wealthfront from a "sell" rating to a "hold" rating in a research report on Saturday, July 18th.

Wealthfront Trading Up 3.0%

NASDAQ WLTH opened at $11.20 on Friday. The stock's 50 day moving average is $10.01 and its 200 day moving average is $10.03. Wealthfront has a 12 month low of $7.20 and a 12 month high of $14.88. The stock has a market cap of $1.75 billion and a PE ratio of -12.04.

Wealthfront (NASDAQ:WLTH - Get Free Report) last announced its quarterly earnings data on Wednesday, September 9th. The company reported $0.10 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.09 by $0.01. The business had revenue of $91.87 million during the quarter. Wealthfront had a negative net margin of 19.42% and a negative return on equity of 14.62%. The firm's quarterly revenue was up .9% on a year-over-year basis. On average, analysts forecast that Wealthfront will post 0.37 EPS for the current fiscal year.

Insider Transactions at Wealthfront

In other news, CTO Julien Wetterwald sold 26,138 shares of the company'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 transaction of $263,993.80. Following the sale, the chief technology officer directly owned 696,525 shares of the company's stock, valued at $7,034,902.50. This represents a 3.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Lauren Lin sold 4,574 shares of the company'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 directly owned 171,816 shares in the company, valued at $1,735,341.60. This trade represents a 2.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 270,688 shares of company stock worth $2,796,816. 27.36% of the stock is owned by insiders.

Institutional Investors Weigh In On Wealthfront

Hedge funds have recently bought and sold shares of the business. BlackRock Inc. bought a new stake in Wealthfront during the second quarter worth approximately $74,766,000. North Reef Capital Management LP raised its position in Wealthfront by 135.2% during the first quarter. North Reef Capital Management LP now owns 2,885,257 shares of the company's stock valued at $26,689,000 after purchasing an additional 1,658,624 shares during the period. Ieq Capital LLC purchased a new stake in Wealthfront during the second quarter valued at approximately $24,706,000. Southpoint Capital Advisors LP bought a new stake in shares of Wealthfront in the 1st quarter valued at approximately $12,950,000. Finally, Congress Asset Management Co. lifted its stake in shares of Wealthfront by 22.1% in the 3rd quarter. Congress Asset Management Co. now owns 1,129,703 shares of the company's stock valued at $11,726,000 after purchasing an additional 204,498 shares during the last quarter.

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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