Wellington Management Group LLP Lowers Stock Holdings in Wealthfront $WLTH

Key Points

• Wellington Management reduced its Wealthfront stake by 11.6% in the second quarter, selling 553,795 shares while retaining 4.21 million shares worth approximately $37.7 million, or 2.82% of the company.
• Wealthfront shares were up 2.7% at $9.58, but the company reported quarterly EPS of $0.07, below the $0.09 consensus estimate. Revenue rose 7.1% year over year to $90.48 million.
• Analyst sentiment remains mixed, with an overall “Hold” rating and an average price target of $12.42; several firms recently lowered their targets. Insiders have sold 136,565 shares worth about $1.19 million over the past three months, primarily under pre-arranged trading plans.

Wellington Management Group LLP cut its position in Wealthfront (NASDAQ:WLTH - Free Report) by 11.6% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 4,213,246 shares of the company's stock after selling 553,795 shares during the quarter. Wellington Management Group LLP owned 2.82% of Wealthfront worth $37,666,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds have also recently modified their holdings of WLTH. Royal Bank of Canada purchased a new position in Wealthfront during the 1st quarter valued at about $27,000. Sandia Investment Management LP purchased a new stake in Wealthfront during the fourth quarter worth about $44,000. Strs Ohio acquired a new stake in shares of Wealthfront during the first quarter worth about $56,000. Barclays PLC acquired a new stake in shares of Wealthfront during the fourth quarter worth about $136,000. Finally, The Manufacturers Life Insurance Company purchased a new position in shares of Wealthfront in the second quarter valued at approximately $106,000.

Wealthfront Stock Up 2.7%

NASDAQ WLTH opened at $9.58 on Friday. Wealthfront has a 52 week low of $7.20 and a 52 week high of $14.88. The stock has a market capitalization of $1.43 billion and a PE ratio of -9.30. The firm has a 50 day moving average of $9.30 and a two-hundred day moving average of $9.58.

Wealthfront (NASDAQ:WLTH - Get Free Report) last announced its quarterly earnings data on Thursday, June 4th. The company reported $0.07 EPS for the quarter, missing analysts' consensus estimates of $0.09 by ($0.02). The business had revenue of $90.48 million for the quarter. Wealthfront's revenue was up 7.1% compared to the same quarter last year. On average, equities research analysts expect that Wealthfront will post 0.4 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Lauren Lin sold 4,840 shares of the company's stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $8.45, for a total transaction of $40,898.00. Following the completion of the transaction, the insider directly owned 158,092 shares of the company's stock, valued at approximately $1,335,877.40. This represents a 2.97% decrease in their position. The transaction was disclosed in a legal 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 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 value of $336,792.60. Following the completion of 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 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 three months, insiders have sold 136,565 shares of company stock worth $1,193,520. 27.36% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. The Goldman Sachs Group cut their target price on shares of Wealthfront from $12.00 to $10.50 and set a "neutral" rating on the stock in a research note on Thursday, July 2nd. Keefe, Bruyette & Woods cut 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. Royal Bank Of Canada reduced their price objective on Wealthfront from $14.00 to $13.00 and set an "outperform" rating on the stock in a research note on Friday, June 5th. Weiss Ratings reiterated a "sell (d)" rating on shares of Wealthfront in a report on Monday, July 6th. Finally, Wells Fargo & Company lowered their target price on Wealthfront from $12.00 to $11.50 and set an "overweight" rating for the company in a research note on Tuesday, August 4th. Four research 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.com, Wealthfront presently has an average rating of "Hold" and an average target price of $12.42.

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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