Insider Selling: Wealthfront (NASDAQ:WLTH) CTO Sells 26,138 Shares

Key Points

• Wealthfront CTO Julien Wetterwald sold 26,138 shares at an average price of $10.10, totaling about $264,000. The transaction, conducted under a pre-arranged Rule 10b5-1 plan, reduced his holdings by 3.62% to 696,525 shares.
• WLTH shares remained flat at $10.10, with a market capitalization of approximately $1.58 billion. The stock has traded between $7.20 and $14.88 over the past year.
• Wealthfront beat quarterly EPS expectations, reporting $0.10 versus the $0.09 consensus on $91.87 million in revenue, but profitability remained weak with a negative net margin of 19.42%. Analysts maintain a consensus “Hold” rating and an average price target near $12.

Wealthfront (NASDAQ:WLTH - Get Free Report) CTO Julien Wetterwald sold 26,138 shares of the stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $10.10, for a total transaction of $263,993.80. Following the sale, the chief technology officer owned 696,525 shares in the company, valued at approximately $7,034,902.50. The trade was a 3.62% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Julien Wetterwald also recently made the following trade(s):

• On Wednesday, September 16th, Julien Wetterwald sold 8,130 shares of Wealthfront stock. The stock was sold at an average price of $10.19, for a total transaction of $82,844.70.
• On Tuesday, September 15th, Julien Wetterwald sold 26,231 shares of Wealthfront stock. The shares were sold at an average price of $10.73, for a total value of $281,458.63.

Wealthfront Price Performance

WLTH remained flat at $10.10 during trading on Friday. The company's stock had a trading volume of 16,620,451 shares, compared to its average volume of 1,690,857. The firm has a market cap of $1.58 billion and a PE ratio of -10.86. The business's 50-day moving average is $9.48 and its 200 day moving average is $9.70. 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 Wednesday, September 9th. The company reported $0.10 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.01. The firm had revenue of $91.87 million during the quarter. Wealthfront had a negative return on equity of 14.62% and a negative net margin of 19.42%.The business's quarterly revenue was up .9% compared to the same quarter last year. As a group, sell-side analysts anticipate that Wealthfront will post 0.41 earnings per share for the current fiscal year.

Key Wealthfront News

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

Analyst Ratings Changes

Several equities analysts have issued reports on WLTH shares. Wells Fargo & Company lowered their target price on shares of Wealthfront from $12.00 to $11.50 and set an "overweight" rating on the stock in a research note on Tuesday, August 4th. Keefe, Bruyette & Woods reduced their price target on shares of Wealthfront from $11.00 to $10.50 and set a "market perform" rating for the company in a research note on Monday, July 13th. Weiss Ratings reissued a "sell (d)" rating on shares of Wealthfront in a report on Monday, July 6th. Royal Bank Of Canada lowered their price objective on shares of Wealthfront from $13.00 to $11.00 and set an "outperform" rating on the stock in a research report on Thursday, September 10th. Finally, The Goldman Sachs Group restated a "neutral" rating and issued a $10.00 target price on shares of Wealthfront in a report on Thursday, September 10th. Four investment 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's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $12.00.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Index Venture Associates VI Ltd purchased a new position in Wealthfront in the fourth quarter worth about $128,567,000. BlackRock Inc. purchased a new stake in shares of Wealthfront during the 2nd quarter valued at about $74,766,000. North Reef Capital Management LP lifted its stake in shares of Wealthfront by 135.2% in the 1st quarter. North Reef Capital Management LP now owns 2,885,257 shares of the company's stock worth $26,689,000 after purchasing an additional 1,658,624 shares during the period. Ieq Capital LLC bought a new position in shares of Wealthfront in the 2nd quarter worth approximately $24,706,000. Finally, Granahan Investment Management LLC purchased a new position in shares of Wealthfront in the fourth quarter worth approximately $18,837,000.

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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