Wealthfront $WLTH Shares Acquired by Congress Asset Management Co.

Key Points

• Congress Asset Management increased its Wealthfront stake by 22.1% in the third quarter to 1.13 million shares, while several other institutions—including BlackRock and Bank of America—also established or expanded positions.
• Wealthfront reported quarterly EPS of $0.10, ahead of the $0.09 consensus, with revenue of $91.87 million, up 0.9% year over year. However, the company continues to post a negative net margin and return on equity.
• Analyst sentiment is mixed, with a consensus “Hold” rating and average price target of $12.14 versus the stock’s $10.55 opening price. Two executives sold shares under pre-arranged Rule 10b5-1 plans, contributing to $2.8 million in insider sales over the past 90 days.

Congress Asset Management Co. grew its stake in Wealthfront (NASDAQ:WLTH - Free Report) by 22.1% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,129,703 shares of the company's stock after buying an additional 204,498 shares during the period. Congress Asset Management Co. owned approximately 0.72% of Wealthfront worth $11,726,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in WLTH. BlackRock Inc. bought a new position in Wealthfront in the 2nd quarter worth approximately $74,766,000. Renaissance Technologies LLC bought a new stake in shares of Wealthfront in the first quarter valued at approximately $1,622,000. Bank of America Corp DE grew its stake in shares of Wealthfront by 1,461.0% in the first quarter. Bank of America Corp DE now owns 743,163 shares of the company's stock worth $6,874,000 after acquiring an additional 695,555 shares during the last quarter. PEAK6 LLC acquired a new stake in shares of Wealthfront in the second quarter worth $2,012,000. Finally, Southpoint Capital Advisors LP bought a new position in Wealthfront during the first quarter worth $12,950,000.

Wealthfront Trading Down 0.7%

Shares of NASDAQ WLTH opened at $10.55 on Wednesday. Wealthfront has a 1-year low of $7.20 and a 1-year high of $14.88. The company has a 50-day moving average of $9.72 and a two-hundred day moving average of $9.87. The company has a market cap of $1.65 billion and a PE ratio of -11.34.

Wealthfront (NASDAQ:WLTH - Get Free Report) last issued its quarterly earnings results on Wednesday, September 9th. The company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.01. Wealthfront had a negative return on equity of 14.62% and a negative net margin of 19.42%.The business had revenue of $91.87 million for the quarter. The firm's revenue was up .9% compared to the same quarter last year. As a group, equities research analysts forecast that Wealthfront will post 0.41 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on WLTH. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $10.00 price objective on shares of Wealthfront in a research report on Thursday, September 10th. Needham & Company LLC started coverage on Wealthfront in a research note on Friday, September 25th. They set a "buy" rating and a $13.00 price target on the stock. Wells Fargo & Company began coverage on Wealthfront in a report on Thursday, October 1st. They issued an "overweight" rating and a $11.50 price target for the company. Keefe, Bruyette & Woods reduced their price objective on Wealthfront from $11.00 to $10.50 and set a "market perform" rating for the company in a research report on Monday, July 13th. Finally, Royal Bank Of Canada decreased their price objective on Wealthfront from $13.00 to $11.00 and set an "outperform" rating on the stock in a report on Thursday, September 10th. Five research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $12.14.

Insider Activity

In related news, VP Kal Iyer sold 26,738 shares of the firm's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $10.11, for a total transaction of $270,321.18. Following the sale, the vice president owned 232,494 shares of the company's stock, valued at approximately $2,350,514.34. This trade represents a 10.31% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Julien Wetterwald sold 26,138 shares of the firm's stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $10.10, for a total value of $263,993.80. Following the sale, the chief technology officer directly owned 696,525 shares in the company, valued at approximately $7,034,902.50. This represents a 3.62% decrease in their position. 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. In the last ninety days, insiders have sold 270,688 shares of company stock valued at $2,796,816. 27.36% of the stock is currently owned by company insiders.

About Wealthfront

Wealthfront, Inc is a U.S.-focused financial technology company that provides automated investing, digital financial planning and cash-management services through an online platform. Its services are designed to help individuals manage portfolios, save for financial goals and oversee their finances without relying on traditional branch-based advisory services.

The company's offerings have included diversified, automated investment portfolios; a cash account for saving and managing everyday funds; financial-planning tools; and lending products such as portfolio lines of credit.

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