BlackRock Inc. Acquires Shares of 8,363,073 Wealthfront $WLTH

Key Points

• BlackRock initiated a major Wealthfront position, purchasing 8.36 million shares worth approximately $74.8 million and gaining a 5.6% stake. Several other institutional investors also recently opened positions.
• Wealthfront reported quarterly revenue of $90.48 million, up 7.1% year over year, but earnings per share of $0.07 missed analysts’ $0.09 estimate. The stock opened at $9.25, well below its one-year high of $14.88.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $12.42. Insiders have sold 136,565 shares worth roughly $1.19 million over the past 90 days, though some sales were conducted under pre-arranged plans.

BlackRock Inc. bought a new stake in Wealthfront (NASDAQ:WLTH - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 8,363,073 shares of the company's stock, valued at approximately $74,766,000. BlackRock Inc. owned 5.60% of Wealthfront as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also made changes to their positions in the company. Royal Bank of Canada bought a new position in shares of Wealthfront during the first quarter worth $27,000. Sandia Investment Management LP bought a new stake in Wealthfront in the 4th quarter valued at approximately $44,000. Strs Ohio acquired a new position in Wealthfront during the 1st quarter worth approximately $56,000. Barclays PLC bought a new position in shares of Wealthfront during the 4th quarter worth approximately $136,000. Finally, Symmetry Investments LP acquired a new position in Wealthfront during the fourth quarter worth $190,000.

Wealthfront Price Performance

Shares of WLTH opened at $9.25 on Monday. Wealthfront has a one year low of $7.20 and a one year high of $14.88. The firm has a 50 day simple moving average of $9.21 and a two-hundred day simple moving average of $9.54. The company has a market cap of $1.38 billion and a P/E ratio of -8.98.

Wealthfront (NASDAQ:WLTH - Get Free Report) last posted its 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 business had revenue of $90.48 million for the quarter. The business's quarterly revenue was up 7.1% compared to the same quarter last year. On average, analysts expect that Wealthfront will post 0.42 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Wall Street Zen upgraded shares of Wealthfront from a "sell" rating to a "hold" rating in a research note on Saturday, July 18th. Wells Fargo & Company reduced 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. Keefe, Bruyette & Woods dropped 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. Royal Bank Of Canada cut their price objective on Wealthfront from $14.00 to $13.00 and set an "outperform" rating for the company in a research report on Friday, June 5th. Finally, JPMorgan Chase & Co. dropped their price target on Wealthfront from $13.00 to $12.00 and set an "overweight" rating on the stock in a research note on Friday, June 5th. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $12.42.

Insiders Place Their Bets

In related news, Director Jaleh Bisharat sold 8,504 shares of the firm's stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $9.39, for a total transaction of $79,852.56. Following the transaction, the director directly owned 8,503 shares of the company's stock, valued at $79,843.17. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 business's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $8.92, for a total value of $408,286.24. Following the completion of the transaction, the vice president directly owned 254,269 shares in the company, valued at approximately $2,268,079.48. This represents a 15.26% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 136,565 shares of company stock valued at $1,193,520 over the last 90 days. 27.36% of the stock is currently owned by corporate insiders.

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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