Alan Imberman Sells 76,540 Shares of Wealthfront (NASDAQ:WLTH) Stock

Key Points

• Wealthfront CFO Alan Imberman sold 76,540 shares for approximately $773,054 under a pre-arranged Rule 10b5-1 plan, reducing his direct holdings by 16.16% to 396,970 shares. He also sold shares in two earlier transactions during the week.
• Wealthfront’s stock remained at $10.10, while the company reported quarterly EPS of $0.10, slightly exceeding estimates, on revenue of $91.87 million. However, revenue growth was only about 1% year over year, and the company remained unprofitable with a 19.42% negative net margin.
• Analyst sentiment is mixed: the consensus rating is “Hold” with an average price target of $12.00, as several brokerages recently lowered their targets despite maintaining generally positive or neutral ratings.

Wealthfront (NASDAQ:WLTH - Get Free Report) CFO Alan Imberman sold 76,540 shares of Wealthfront stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $10.10, for a total value of $773,054.00. Following the completion of the sale, the chief financial officer directly owned 396,970 shares in the company, valued at approximately $4,009,397. This represents a 16.16% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Alan Imberman also recently made the following trade(s):

• On Wednesday, September 16th, Alan Imberman sold 6,292 shares of Wealthfront stock. The shares were sold at an average price of $10.19, for a total transaction of $64,115.48.
• On Tuesday, September 15th, Alan Imberman sold 20,304 shares of Wealthfront stock. The stock was sold at an average price of $10.73, for a total value of $217,861.92.

Wealthfront Price Performance

Shares of NASDAQ WLTH remained flat at $10.10 during trading hours on Friday. The stock had a trading volume of 16,620,451 shares, compared to its average volume of 1,690,857. Wealthfront has a 12 month low of $7.20 and a 12 month high of $14.88. The firm's fifty day moving average price is $9.48 and its 200 day moving average price is $9.70. The stock has a market capitalization of $1.58 billion and a PE ratio of -10.86.

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

Institutional Investors Weigh In On Wealthfront

A number of hedge funds and other institutional investors have recently modified their holdings of WLTH. BlackRock Inc. acquired a new stake in Wealthfront in the second quarter worth $74,766,000. Renaissance Technologies LLC acquired a new position in shares of Wealthfront during the first quarter valued at about $1,622,000. Bank of America Corp DE raised its holdings in shares of Wealthfront by 1,461.0% during the first quarter. Bank of America Corp DE now owns 743,163 shares of the company's stock valued at $6,874,000 after purchasing an additional 695,555 shares during the period. Southpoint Capital Advisors LP bought a new position in shares of Wealthfront during the 1st quarter worth about $12,950,000. Finally, PEAK6 LLC acquired a new stake in shares of Wealthfront in the 2nd quarter valued at about $2,012,000.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on WLTH. Royal Bank Of Canada reduced their target price on Wealthfront from $13.00 to $11.00 and set an "outperform" rating for the company in a research note on Thursday, September 10th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Wealthfront in a research report on Monday, July 6th. Wall Street Zen upgraded shares of Wealthfront from a "sell" rating to a "hold" rating in a report on Saturday, July 18th. Keefe, Bruyette & Woods dropped their price objective on shares of Wealthfront from $11.00 to $10.50 and set a "market perform" rating on the stock in a research report on Monday, July 13th. Finally, JPMorgan Chase & Co. cut their target price on shares of Wealthfront from $13.00 to $12.00 and set an "overweight" rating for the company in a research note on Friday, June 5th. Four 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 stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $12.00.

Key Headlines Impacting Wealthfront

Here are the key news stories impacting Wealthfront this week:

• Positive Sentiment: Platform assets increased 12% year over year to $99 billion in the fiscal second quarter and exceeded $100 billion by the end of August. Funded clients rose 14% to 1.51 million, supporting the long-term growth outlook. Wealthfront platform assets article
• Positive Sentiment: Wealthfront reported quarterly EPS of $0.10, beating the $0.09 consensus estimate, while revenue reached $91.87 million. Analysts expect approximately $0.41 in full-year EPS.
• Positive Sentiment: Institutional interest provides an additional supportive signal. Index Venture Associates and BlackRock established sizable positions, while North Reef Capital increased its stake by 135.2%.
• Neutral Sentiment: Growth in assets and clients has not yet translated into comparable financial expansion: quarterly revenue increased only about 1% year over year. Wealthfront also reported a negative net margin of 19.42% and negative return on equity of 14.62%, keeping profitability a key investor concern.
• Neutral Sentiment: Analyst opinion remains mixed. Goldman Sachs maintained a neutral rating with a $10 price target, while RBC, Wells Fargo and other firms lowered targets but generally retained positive ratings. The overall consensus is “Hold,” with an average target near $12.
• Negative Sentiment: Insiders disclosed approximately $1.34 million of combined stock sales, including transactions by the CFO, CTO, vice presidents, Lauren Lin and a director. The selling may weigh on sentiment, although the reported transactions were primarily made to cover tax withholding on vested equity awards, and one director’s sale occurred under a pre-arranged Rule 10b5-1 plan. Wealthfront insider sales article

Wealthfront Company Profile

Wealthfront, Inc is a U.S.-based digital wealth management company that provides automated investing, financial planning and cash management services through an online platform and mobile applications. The company is designed to help individuals manage their finances with technology-driven tools and diversified investment portfolios.

Its offerings have included automated investment accounts, tax-efficient portfolio management, financial planning tools, high-yield cash management products and lending services.

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