Wealthfront (NASDAQ:WLTH) Insider Sells 4,995 Shares of Stock

Key Points

• Wealthfront insider Lauren Lin sold 4,995 shares at an average price of $10.19, generating $50,899 in proceeds. The sale was made to cover tax-withholding obligations tied to vested equity awards, leaving Lin with 176,390 shares.
• Wealthfront shares fell 0.5% to $10.12, while the company reported quarterly EPS of $0.10, exceeding the $0.09 consensus estimate, on $91.87 million in revenue.
• The company’s platform assets surpassed $100 billion and funded clients grew 14% year over year, but revenue rose only about 1% and Wealthfront remained unprofitable. Analysts have a consensus “Hold” rating with an average price target of $12.00.

Wealthfront (NASDAQ:WLTH - Get Free Report) insider Lauren Lin sold 4,995 shares of the firm's stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $10.19, for a total value of $50,899.05. Following the transaction, the insider owned 176,390 shares in the company, valued at $1,797,414.10. The trade was a 2.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

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

• 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 value of $172,935.41.

Wealthfront Trading Down 0.5%

Shares of Wealthfront stock traded down $0.05 during trading on Thursday, hitting $10.12. 3,124,872 shares of the stock traded hands, compared to its average volume of 1,606,351. The stock's fifty day simple moving average is $9.46 and its 200 day simple moving average is $9.69. The firm has a market cap of $1.58 billion and a P/E ratio of -10.88. Wealthfront has a 52-week low of $7.20 and a 52-week high of $14.88.

Wealthfront (NASDAQ:WLTH - Get Free Report) last released its quarterly earnings data on Wednesday, September 9th. The company reported $0.10 earnings per share for the quarter, topping analysts' consensus estimates of $0.09 by $0.01. The company 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 firm's revenue was up .9% compared to the same quarter last year. As a group, equities analysts expect that Wealthfront will post 0.41 EPS for the current year.

Wealthfront News Summary

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.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in WLTH. Whetstone Capital Advisors LLC increased its position in Wealthfront by 10.6% during the 2nd quarter. Whetstone Capital Advisors LLC now owns 604,160 shares of the company's stock valued at $5,401,000 after buying an additional 57,753 shares in the last quarter. Squarepoint Ops LLC acquired a new position in shares of Wealthfront during the second quarter valued at about $90,000. Arizona State Retirement System purchased a new position in shares of Wealthfront in the 2nd quarter valued at approximately $102,000. AXQ Capital LP acquired a new stake in Wealthfront in the 2nd quarter worth approximately $105,000. Finally, ICONIQ Capital LLC purchased a new stake in Wealthfront during the 2nd quarter worth approximately $111,000.

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. Keefe, Bruyette & Woods reduced 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 note on Monday, July 13th. Wells Fargo & Company dropped their target price on Wealthfront from $12.00 to $11.50 and set an "overweight" rating on the stock in a research report on Tuesday, August 4th. Weiss Ratings reiterated a "sell (d)" rating on shares of Wealthfront in a report on Monday, July 6th. JPMorgan Chase & Co. decreased their price objective on Wealthfront from $13.00 to $12.00 and set an "overweight" rating for the company in a research note on Friday, June 5th. Finally, The Goldman Sachs Group reaffirmed a "neutral" rating and set a $10.00 price objective on shares of Wealthfront in a research report on Thursday, September 10th. Four research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Wealthfront has an average rating of "Hold" and an average target price of $12.00.

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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