Insider Selling: Wealthfront (NASDAQ:WLTH) CTO Sells $82,844.70 in Stock

Key Points

• Wealthfront CTO Julien Wetterwald sold 8,130 shares for $82,844.70 at an average price of $10.19, reducing his stake by 1.11%. The sale was intended to cover tax-withholding obligations tied to vested equity awards.
• Wealthfront shares fell 0.5% to $10.12, while the company reported quarterly EPS of $0.10, ahead of the $0.09 consensus estimate, on $91.87 million in revenue. Despite platform growth, Wealthfront remained unprofitable with a negative 19.42% net margin.
• Analysts maintain a mixed outlook, with four Buy, four Hold and one Sell rating; the consensus rating is Hold with an average price target of $12.00.

Wealthfront (NASDAQ:WLTH - Get Free Report) CTO Julien Wetterwald sold 8,130 shares of the company's stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $10.19, for a total value of $82,844.70. Following the transaction, the chief technology officer owned 722,663 shares of the company's stock, valued at approximately $7,363,935.97. This represents a 1.11% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

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

• 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 transaction of $281,458.63.

Wealthfront Stock Down 0.5%

Shares of NASDAQ:WLTH traded down $0.05 on Thursday, hitting $10.12. The company had a trading volume of 3,124,872 shares, compared to its average volume of 1,606,351. The firm's 50-day simple moving average is $9.46 and its two-hundred day simple moving average is $9.69. The firm has a market capitalization of $1.58 billion and a price-to-earnings ratio of -10.88. Wealthfront has a 1 year low of $7.20 and a 1 year high of $14.88.

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

Analyst Ratings Changes

Several research firms recently commented on WLTH. JPMorgan Chase & Co. dropped their price objective on shares of Wealthfront from $13.00 to $12.00 and set an "overweight" rating on the stock in a research note on Friday, June 5th. Royal Bank Of Canada cut their price target on Wealthfront from $13.00 to $11.00 and set an "outperform" rating on the stock in a research note on Thursday, September 10th. Wall Street Zen upgraded Wealthfront from a "sell" rating to a "hold" rating in a research note on Saturday, July 18th. Weiss Ratings reissued a "sell (d)" rating on shares of Wealthfront in a research note on Monday, July 6th. Finally, Keefe, Bruyette & Woods lowered their price target 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. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $12.00.

Institutional Trading of Wealthfront

Large investors have recently added to or reduced their stakes in the business. Index Venture Associates VI Ltd bought a new position in Wealthfront in the 4th quarter worth $128,567,000. BlackRock Inc. bought a new position in shares of Wealthfront during the 2nd quarter valued at approximately $74,766,000. Ieq Capital LLC purchased a new stake in Wealthfront in the 2nd quarter worth approximately $24,706,000. North Reef Capital Management LP raised its stake in 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 period. Finally, Southpoint Capital Advisors LP purchased a new position in Wealthfront during the first quarter valued at approximately $12,950,000.

Key Headlines Impacting Wealthfront

Here are the key news stories impacting Wealthfront this week:

• Positive Sentiment: Wealthfront’s platform assets surpassed $100 billion by the end of August, while second-quarter funded clients increased 14% year over year to 1.51 million. Platform assets rose 12% to $99 billion, supporting the long-term growth story. Wealthfront Tops $100 Billion in Platform Assets
• Positive Sentiment: Second-quarter earnings exceeded expectations, with earnings per share of $0.10 versus the $0.09 consensus estimate. Revenue reached $91.9 million, and analysts expect approximately $0.41 in full-year EPS.
• Neutral Sentiment: The company’s growth is not yet translating proportionally into revenue: quarterly revenue increased only about 1% year over year despite the 12% increase in platform assets. Wealthfront also remains unprofitable, with a negative net margin of 19.42% and negative return on equity of 14.62%. Wealthfront Earnings Call: Growth Strong, Margins Tested
• Negative Sentiment: Several executives and insiders reported sales totaling roughly $1.34 million, including transactions by the CFO, CTO, two vice presidents, a director and another insider. Most sales were explicitly made to cover tax-withholding obligations related to vested equity awards, which reduces their signaling value; the director’s sale was conducted under a pre-arranged Rule 10b5-1 plan. Nevertheless, the volume of insider selling can weigh on investor confidence and add near-term supply.

About Wealthfront

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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