Southpoint Capital Advisors LP Buys New Position in Wealthfront $WLTH

Key Points

• Southpoint Capital Advisors initiated a 1.4 million-share Wealthfront position valued at approximately $12.95 million, representing about 0.94% of the company. Several other institutional investors also increased or opened positions during the first quarter.
• Wealthfront reported quarterly revenue of $90.48 million, up 7.1% year over year, but its $0.07 EPS missed the $0.09 analyst consensus. The stock opened at $9.24, versus a consensus analyst target of $12.50 and an overall “Hold” rating.
• Analyst sentiment remains mixed, with price-target reductions from RBC, Keefe, Bruyette & Woods, and Goldman Sachs. Insiders sold 136,565 shares worth about $1.19 million during the last quarter, though insiders still own 27.36% of the stock.

Southpoint Capital Advisors LP bought a new stake in shares of Wealthfront (NASDAQ:WLTH - Free Report) in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund bought 1,400,000 shares of the company's stock, valued at approximately $12,950,000. Southpoint Capital Advisors LP owned about 0.94% of Wealthfront at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. SummitTX Capital L.P. purchased a new stake in shares of Wealthfront during the 1st quarter valued at $131,000. North Reef Capital Management LP lifted its holdings in shares of Wealthfront by 135.2% during the 1st quarter. North Reef Capital Management LP now owns 2,885,257 shares of the company's stock worth $26,689,000 after acquiring an additional 1,658,624 shares during the last quarter. Renaissance Technologies LLC purchased a new position in Wealthfront in the first quarter worth $1,622,000. Gabelli Funds LLC grew its position in Wealthfront by 470.6% in the first quarter. Gabelli Funds LLC now owns 110,701 shares of the company's stock worth $1,024,000 after acquiring an additional 91,301 shares in the last quarter. Finally, Bank of Nova Scotia bought a new position in Wealthfront in the first quarter valued at $334,000.

Wealthfront Price Performance

Wealthfront stock opened at $9.24 on Tuesday. The stock has a fifty day simple moving average of $9.72. Wealthfront has a twelve month low of $7.20 and a twelve month high of $14.88. The company has a market capitalization of $1.38 billion and a P/E ratio of -8.97.

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

Insider Buying and Selling

In related news, Director Jaleh Bisharat sold 8,503 shares of the stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $9.50, for a total transaction of $80,778.50. Following the completion of the sale, the director directly owned 8,503 shares in the company, valued at $80,778.50. This represents a 50.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available 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 firm's stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $8.46, for a total value 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. 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 quarter, insiders have sold 136,565 shares of company stock valued at $1,193,520. 27.36% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the company. Royal Bank Of Canada dropped their price target on Wealthfront from $14.00 to $13.00 and set an "outperform" rating for the company in a research note on Friday, June 5th. Keefe, Bruyette & Woods reduced their price objective on Wealthfront from $11.00 to $10.50 and set a "market perform" rating on the stock in a research report on Monday, July 13th. Weiss Ratings reissued a "sell (d)" rating on shares of Wealthfront in a report on Monday, July 6th. Wall Street Zen upgraded Wealthfront from a "sell" rating to a "hold" rating in a research report on Saturday, July 18th. Finally, The Goldman Sachs Group cut their target price on Wealthfront from $12.00 to $10.50 and set a "neutral" rating for the company in a research note on Thursday, July 2nd. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $12.50.

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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