Wealthfront (NASDAQ:WLTH) Stock Price Down 4.9% - Here's Why

Key Points

• Wealthfront shares fell 4.9% to about $10.15 in mid-day trading, with trading volume down 69% from the average daily level.
• Analyst sentiment is mixed: MarketBeat reports an overall “Hold” rating and an average price target of $12.29, compared with targets ranging from $10.50 to $13.00.
• The company slightly exceeded quarterly EPS estimates, reporting $0.10 versus $0.09 expected, but continues to post a negative net margin and return on equity. Insiders have sold $2.8 million of shares over the past 90 days.

Wealthfront (NASDAQ:WLTH - Get Free Report)'s stock price fell 4.9% during mid-day trading on Tuesday. The stock traded as low as $10.22 and last traded at $10.1460. Approximately 532,948 shares changed hands during mid-day trading, a decline of 69% from the average daily volume of 1,739,001 shares. The stock had previously closed at $10.67.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. The Goldman Sachs Group reiterated a "neutral" rating and set a $11.00 price target on shares of Wealthfront in a report on Wednesday, October 7th. Keefe, Bruyette & Woods dropped 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. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Wealthfront in a research report on Friday, October 2nd. Royal Bank Of Canada reduced their target price on Wealthfront from $13.00 to $11.00 and set an "outperform" rating for the company in a research note on Thursday, September 10th. Finally, Needham & Company LLC reissued a "buy" rating and set a $13.00 target price on shares of Wealthfront in a report on Wednesday, October 7th. Five investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $12.29.

Wealthfront Stock Performance

The firm has a market cap of $1.58 billion and a P/E ratio of -10.87. The firm's fifty day moving average is $9.83 and its 200 day moving average is $9.95.

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

Insider Buying and Selling

In other news, CFO Alan Imberman sold 76,540 shares of the 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 $773,054.00. Following the transaction, the chief financial officer owned 396,970 shares in the company, valued at approximately $4,009,397. This trade represents a 16.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Julien Wetterwald sold 26,231 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $10.73, for a total value of $281,458.63. Following the transaction, the chief technology officer owned 730,793 shares in the company, valued at $7,841,408.89. The trade was a 3.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 270,688 shares of company stock valued at $2,796,816 in the last ninety days. 27.36% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Wealthfront

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

Wealthfront Company Profile

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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