Wealthfront (NASDAQ:WLTH) CFO Sells $64,115.48 in Stock

Key Points

• Wealthfront CFO Alan Imberman sold 6,292 shares for $64,115 at an average price of $10.19, reducing his ownership by 1.31%. The sale was intended to cover tax-withholding obligations from vested equity awards.
• Wealthfront shares fell 0.5% to $10.12, while the company’s latest quarterly results exceeded expectations with EPS of $0.10 versus the $0.09 consensus and revenue of $91.87 million.
• The company continues to grow its platform assets and funded-client base, but remains unprofitable, posting a negative 19.42% net margin. Analysts have a consensus “Hold” rating and an average price target of $12.00.

Wealthfront (NASDAQ:WLTH - Get Free Report) CFO Alan Imberman sold 6,292 shares of Wealthfront stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $10.19, for a total value of $64,115.48. Following the sale, the chief financial officer directly owned 473,510 shares in the company, valued at approximately $4,825,066.90. The trade was a 1.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

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

• On Tuesday, September 15th, Alan Imberman sold 20,304 shares of Wealthfront stock. The shares were sold at an average price of $10.73, for a total value of $217,861.92.

Wealthfront Trading Down 0.5%

NASDAQ WLTH traded down $0.05 during mid-day trading on Thursday, reaching $10.12. 3,124,872 shares of the company's stock traded hands, compared to its average volume of 1,606,351. Wealthfront has a 1-year low of $7.20 and a 1-year high of $14.88. The company has a fifty day simple moving average of $9.46 and a 200-day simple moving average of $9.69. The company has a market cap of $1.58 billion and a price-to-earnings ratio of -10.88.

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

More Wealthfront News

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.

Analyst Ratings Changes

A number of research analysts have commented on WLTH shares. Weiss Ratings reiterated a "sell (d)" rating on shares of Wealthfront in a research note on Monday, July 6th. 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. JPMorgan Chase & Co. decreased their price target on Wealthfront from $13.00 to $12.00 and set an "overweight" rating for the company in a research note on Friday, June 5th. Wall Street Zen raised Wealthfront from a "sell" rating to a "hold" rating in a report on Saturday, July 18th. Finally, 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 note on Monday, July 13th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $12.00.

Institutional Inflows and Outflows

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

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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