North Reef Capital Management LP Boosts Stock Position in Wealthfront $WLTH

Key Points

• North Reef Capital Management increased its Wealthfront stake by 135.2% in Q1, ending with 2.89 million shares worth about $26.7 million, or roughly 1.93% of the company.
• Several insiders sold shares in June, including VP Kal Iyer and CTO Julien Wetterwald, while insiders still collectively own 27.36% of Wealthfront.
• Wealthfront missed earnings estimates in its latest quarter, posting $0.07 EPS versus $0.09 expected, even though revenue rose 7.1% year over year to $90.48 million.

North Reef Capital Management LP raised its holdings in Wealthfront (NASDAQ:WLTH - Free Report) by 135.2% during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 2,885,257 shares of the company's stock after acquiring an additional 1,658,624 shares during the quarter. Wealthfront makes up 0.9% of North Reef Capital Management LP's holdings, making the stock its 24th largest holding. North Reef Capital Management LP owned about 1.93% of Wealthfront worth $26,689,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Tiger Global Management LLC purchased a new stake in shares of Wealthfront during the fourth quarter valued at $205,982,000. Dag Ventures LLC purchased a new position in Wealthfront in the 4th quarter worth about $187,725,000. Index Venture Associates VI Ltd bought a new stake in Wealthfront during the 4th quarter valued at about $128,567,000. Wellington Management Group LLP bought a new stake in Wealthfront during the 4th quarter valued at about $54,182,000. Finally, T. Rowe Price Investment Management Inc. purchased a new stake in Wealthfront in the 4th quarter valued at about $31,136,000.

Insider Buying and Selling

In other Wealthfront news, VP Kal Iyer sold 28,498 shares of the business's stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $8.46, for a total value of $241,093.08. Following the completion of the transaction, the vice president directly owned 225,771 shares in the company, valued at approximately $1,910,022.66. The trade was a 11.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Julien Wetterwald sold 39,810 shares of the 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 sale, the chief technology officer directly owned 727,052 shares of the company's stock, valued at approximately $6,150,859.92. The trade was a 5.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 136,565 shares of company stock valued at $1,193,520. Company insiders own 27.36% of the company's stock.

Wealthfront Stock Down 1.1%

Shares of NASDAQ:WLTH opened at $8.88 on Friday. The company has a market capitalization of $1.33 billion and a P/E ratio of -8.62. Wealthfront has a 52 week low of $7.20 and a 52 week high of $14.88. The business has a 50 day simple moving average of $9.78.

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 during the quarter. The company's revenue was up 7.1% on a year-over-year basis. As a group, equities analysts anticipate that Wealthfront will post 0.42 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of brokerages have commented on WLTH. 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 lowered their price target on Wealthfront from $13.00 to $12.00 and set an "overweight" rating for the company in a report on Wednesday, July 1st. The Goldman Sachs Group dropped their price objective on Wealthfront from $12.00 to $10.50 and set a "neutral" rating on the stock in a research note on Thursday, July 2nd. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Wealthfront in a research report on Monday, July 6th. Finally, JPMorgan Chase & Co. lowered their target price on Wealthfront from $13.00 to $12.00 and set an "overweight" rating for the company in a report on Friday, June 5th. Four investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Wealthfront presently has a consensus rating of "Hold" and a consensus price target of $12.50.

Wealthfront Company Profile

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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