Insider Selling: Wealthfront (NASDAQ:WLTH) Insider Sells $46,197.40 in Stock

Key Points

• Wealthfront insider Lauren Lin sold 4,574 shares for $46,197.40 at an average price of $10.10 under a pre-arranged Rule 10b5-1 plan, reducing her ownership by 2.59% to 171,816 shares.
• Wealthfront reported quarterly EPS of $0.10, exceeding the $0.09 consensus estimate, with revenue of $91.87 million. However, revenue grew only 0.9% year over year, while the company posted a negative net margin and negative return on equity.
• Shares remained flat at $10.10, while analysts maintained a consensus “Hold” rating and an average price target of $12.00; major institutions including BlackRock also recently acquired positions.

Wealthfront (NASDAQ:WLTH - Get Free Report) insider Lauren Lin sold 4,574 shares of the company's stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $10.10, for a total transaction of $46,197.40. Following the sale, the insider directly owned 171,816 shares in the company, valued at approximately $1,735,341.60. The trade was a 2.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Lauren Lin also recently made the following trade(s):

• On Wednesday, September 16th, Lauren Lin sold 4,995 shares of Wealthfront stock. The shares were sold at an average price of $10.19, for a total transaction of $50,899.05.
• On Tuesday, September 15th, Lauren Lin sold 16,117 shares of Wealthfront stock. The stock was sold at an average price of $10.73, for a total transaction of $172,935.41.

Wealthfront Stock Performance

Shares of Wealthfront stock 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 1-year low of $7.20 and a 1-year high of $14.88. The firm has a 50-day moving average of $9.48 and a two-hundred day moving average of $9.70. The company has a market capitalization of $1.58 billion and a price-to-earnings ratio of -10.86.

Wealthfront (NASDAQ:WLTH - Get Free Report) last announced its quarterly earnings data 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 company's quarterly revenue was up .9% compared to the same quarter last year. As a group, sell-side analysts forecast that Wealthfront will post 0.41 earnings per share for the current year.

Institutional Investors Weigh In On Wealthfront

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

Wealthfront News Roundup

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

Analysts Set New Price Targets

A number of research firms recently weighed in on WLTH. Royal Bank Of Canada cut their target price on shares of 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 shares of Wealthfront from a "sell" rating to a "hold" rating in a report on Saturday, July 18th. 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 report on Friday, June 5th. Weiss Ratings restated a "sell (d)" rating on shares of Wealthfront in a report on Monday, July 6th. Finally, Keefe, Bruyette & Woods decreased their price objective on shares of 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 assigned a Sell rating to the company's stock. According to MarketBeat, Wealthfront presently has a consensus rating of "Hold" and an average target price of $12.00.

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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