Wealthfront (NASDAQ:WLTH) VP Kal Iyer Sells 10,408 Shares

Key Points

• Wealthfront VP Kal Iyer sold 10,408 shares at an average price of $10.19, totaling approximately $106,058. The sale reduced his ownership by 3.86% and was made 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, beating the $0.09 consensus estimate, on revenue of $91.87 million.
• 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 collectively rate the stock “Hold,” with an average price target of $12.00.

Wealthfront (NASDAQ:WLTH - Get Free Report) VP Kal Iyer sold 10,408 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 $106,057.52. Following the sale, the vice president owned 259,232 shares in the company, valued at approximately $2,641,574.08. This trade represents a 3.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Kal Iyer also recently made the following trade(s):

• On Tuesday, September 15th, Kal Iyer sold 33,583 shares of Wealthfront stock. The stock was sold at an average price of $10.73, for a total value of $360,345.59.

Wealthfront Trading Down 0.5%

Shares of NASDAQ WLTH traded down $0.05 during trading hours on Thursday, hitting $10.12. 3,124,872 shares of the company traded hands, compared to its average volume of 1,606,351. The company's 50 day moving average price is $9.46 and its 200 day moving average price is $9.69. Wealthfront has a 12 month low of $7.20 and a 12 month high of $14.88. The stock has a market capitalization of $1.58 billion and a price-to-earnings ratio of -10.88.

Wealthfront (NASDAQ:WLTH - Get Free Report) last issued 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. The company 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 revenue was up .9% compared to the same quarter last year. Equities analysts anticipate that Wealthfront will post 0.41 EPS for the current 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

Several research analysts have issued reports on the company. Royal Bank Of Canada dropped their target price on Wealthfront from $13.00 to $11.00 and set an "outperform" rating for the company in a research report on Thursday, September 10th. Keefe, Bruyette & Woods reduced their target price 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. Weiss Ratings reiterated a "sell (d)" rating on shares of Wealthfront in a research report on Monday, July 6th. The Goldman Sachs Group restated a "neutral" rating and issued a $10.00 price target on shares of Wealthfront in a report on Thursday, September 10th. Finally, Wells Fargo & Company reduced their price target 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. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Wealthfront presently has an average rating of "Hold" and an average price target of $12.00.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Royal Bank of Canada bought a new stake in Wealthfront during the 1st quarter valued at $27,000. Strs Ohio purchased a new stake in shares of Wealthfront in the 1st quarter worth $56,000. Squarepoint Ops LLC bought a new position in shares of Wealthfront during the 2nd quarter worth $90,000. Arizona State Retirement System purchased a new position in shares of Wealthfront during the second quarter valued at $102,000. Finally, AXQ Capital LP purchased a new position in shares of Wealthfront during the second quarter valued at $105,000.

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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