Pillsbury Lake Capital LLC Purchases New Shares in Wealthfront $WLTH

Key Points

• Pillsbury Lake Capital acquired 1.03 million Wealthfront shares in the second quarter, making the position approximately 2.5% of its portfolio; several other institutional investors also initiated stakes.
• Analysts have generally become more cautious, lowering price targets while maintaining a consensus “Hold” rating and an average target of $12.42.
• Wealthfront shares opened at $9.30, while the company’s latest quarterly results showed revenue rising 7.1% year over year but EPS of $0.07 falling short of the $0.09 consensus estimate; insiders have also sold shares under pre-arranged trading plans.

Pillsbury Lake Capital LLC purchased a new position in Wealthfront (NASDAQ:WLTH - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 1,025,030 shares of the company's stock, valued at approximately $9,163,768,000. Wealthfront makes up about 2.5% of Pillsbury Lake Capital LLC's portfolio, making the stock its 21st biggest holding. Pillsbury Lake Capital LLC owned approximately 0.69% of Wealthfront at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Tiger Global Management LLC acquired a new stake in shares of Wealthfront in the fourth quarter valued at about $205,982,000. Dag Ventures LLC acquired a new position in shares of Wealthfront during the 4th quarter worth about $187,725,000. Index Venture Associates VI Ltd purchased a new position in Wealthfront in the 4th quarter valued at about $128,567,000. BlackRock Inc. purchased a new position in Wealthfront in the 2nd quarter valued at about $74,766,000. Finally, Wellington Management Group LLP acquired a new stake in Wealthfront in the 4th quarter worth about $54,182,000.

Insider Activity

In related news, insider Lauren Lin sold 4,840 shares of the company's stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $8.45, for a total value of $40,898.00. Following the transaction, the insider directly owned 158,092 shares in the company, valued at approximately $1,335,877.40. This represents a 2.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Julien Wetterwald sold 39,810 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 transaction of $336,792.60. Following the completion of the sale, the chief technology officer owned 727,052 shares in the company, valued at approximately $6,150,859.92. This trade represents a 5.19% 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 90 days, insiders sold 136,565 shares of company stock worth $1,193,520. Corporate insiders own 27.36% of the company's stock.

Analysts Set New Price Targets

Several research firms have commented on WLTH. The Goldman Sachs Group cut their price objective on Wealthfront from $12.00 to $10.50 and set a "neutral" rating for the company in a research note on Thursday, July 2nd. Keefe, Bruyette & Woods lowered their price target 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. Wells Fargo & Company dropped their price target on Wealthfront from $12.00 to $11.50 and set an "overweight" rating for the company in a research report on Tuesday, August 4th. Royal Bank Of Canada reduced their price objective on Wealthfront from $14.00 to $13.00 and set an "outperform" rating for the company in a research note on Friday, June 5th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Wealthfront in a report on Monday, July 6th. Four investment 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. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $12.42.

Wealthfront Price Performance

Shares of Wealthfront stock opened at $9.30 on Thursday. The stock's 50 day simple moving average is $9.17 and its 200-day simple moving average is $9.53. The stock has a market cap of $1.39 billion and a P/E ratio of -9.03. Wealthfront has a 1-year low of $7.20 and a 1-year high of $14.88.

Wealthfront (NASDAQ:WLTH - Get Free Report) last posted its quarterly earnings results on Thursday, June 4th. The company reported $0.07 EPS for the quarter, missing the consensus estimate of $0.09 by ($0.02). The company had revenue of $90.48 million during the quarter. Wealthfront's revenue for the quarter was up 7.1% compared to the same quarter last year. As a group, research analysts expect that Wealthfront will post 0.42 EPS for the current fiscal year.

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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