Wealthfront (NASDAQ:WLTH) Shares Up 3.4% - Should You Buy?

Key Points

• Wealthfront shares rose 3.4% to approximately $10.45, although trading volume was 69% below the average session level.
• Analyst sentiment is mixed but leans cautious: the stock has an average “Hold” rating and a consensus price target of $12.29, with five Buy, four Hold, and one Sell rating.
• The company slightly exceeded quarterly EPS estimates and reported $91.87 million in revenue, but remained unprofitable with a negative net margin of 19.42%; insiders have also sold roughly $2.8 million of stock over the past 90 days.

Shares of Wealthfront (NASDAQ:WLTH - Get Free Report) traded up 3.4% during mid-day trading on Wednesday. The company traded as high as $10.45 and last traded at $10.4450. Approximately 554,643 shares changed hands during mid-day trading, a decline of 69% from the average session volume of 1,762,886 shares. The stock had previously closed at $10.10.

Analyst Upgrades and Downgrades

Several research firms have commented on WLTH. Wall Street Zen raised shares of Wealthfront from a "sell" rating to a "hold" rating in a research note on Saturday, July 18th. Royal Bank Of Canada decreased their price objective on shares of Wealthfront from $13.00 to $11.00 and set an "outperform" rating for the company in a report on Thursday, September 10th. Needham & Company LLC reiterated a "buy" rating and set a $13.00 price objective on shares of Wealthfront in a research note on Wednesday, October 7th. Keefe, Bruyette & Woods dropped their target price on Wealthfront from $11.00 to $10.50 and set a "market perform" rating on the stock in a report on Monday, July 13th. Finally, The Goldman Sachs Group restated a "neutral" rating and issued a $11.00 target price on shares of Wealthfront in a research report on Wednesday, October 7th. Five equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $12.29.

Wealthfront Price Performance

The business has a fifty day moving average of $9.84 and a 200-day moving average of $9.96. The stock has a market capitalization of $1.63 billion and a price-to-earnings ratio of -11.26.

Wealthfront (NASDAQ:WLTH - Get Free Report) last issued its quarterly earnings results on Wednesday, September 9th. The company reported $0.10 earnings per share for the quarter, beating 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 revenue for the quarter was up .9% on a year-over-year basis. As a group, research analysts anticipate that Wealthfront will post 0.41 EPS for the current year.

Insider Buying and Selling at Wealthfront

In other Wealthfront news, VP Kal Iyer sold 26,738 shares of Wealthfront stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $10.11, for a total value of $270,321.18. Following the transaction, the vice president owned 232,494 shares in the company, valued at approximately $2,350,514.34. The trade was a 10.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Lauren Lin sold 4,574 shares of the company's stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $10.10, for a total value of $46,197.40. Following the completion of the transaction, the insider directly owned 171,816 shares in the company, valued at $1,735,341.60. This represents a 2.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 270,688 shares of company stock valued at $2,796,816 in the last ninety days. Company insiders own 27.36% of the company's stock.

Institutional Investors Weigh In On Wealthfront

Several large investors have recently modified their holdings of the stock. Congress Asset Management Co. grew its holdings in shares of Wealthfront by 22.1% in the 3rd quarter. Congress Asset Management Co. now owns 1,129,703 shares of the company's stock worth $11,726,000 after acquiring an additional 204,498 shares during the last quarter. Whetstone Capital Advisors LLC boosted its position in shares of Wealthfront by 10.6% in the 2nd quarter. Whetstone Capital Advisors LLC now owns 604,160 shares of the company's stock valued at $5,401,000 after purchasing an additional 57,753 shares during the period. Squarepoint Ops LLC acquired a new position in shares of Wealthfront in the 2nd quarter valued at $90,000. Arizona State Retirement System acquired a new position in shares of Wealthfront in the 2nd quarter valued at $102,000. Finally, AXQ Capital LP purchased a new position in Wealthfront in the 2nd quarter worth about $105,000.

About Wealthfront

Wealthfront, Inc is a U.S.-focused financial technology company that provides automated investing, digital financial planning and cash-management services through an online platform. Its services are designed to help individuals manage portfolios, save for financial goals and oversee their finances without relying on traditional branch-based advisory services.

The company's offerings have included diversified, automated investment portfolios; a cash account for saving and managing everyday funds; financial-planning tools; and lending products such as portfolio lines of credit.

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