Wealthfront (NASDAQ:WLTH) Stock Price Up 7.9% After Better-Than-Expected Earnings

Key Points

• Wealthfront shares jumped 7.9% after the company reported quarterly EPS of $0.10, topping the $0.09 analyst consensus. Revenue reached $91.87 million, up 0.9% year over year.
• Analysts maintain a mixed outlook: Wealthfront has an average rating of “Hold” and an average price target of $12.00, with recent targets ranging from $10.00 to $11.50.
• Insiders sold 136,565 shares worth approximately $1.19 million over the past three months, while insiders collectively retain a 27.36% ownership stake in the company.

Wealthfront (NASDAQ:WLTH - Get Free Report)'s share price shot up 7.9% during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $10.23 and last traded at $10.2120. 527,726 shares changed hands during trading, a decline of 65% from the average session volume of 1,496,695 shares. The stock had previously closed at $9.46.

The company reported $0.10 EPS for the quarter, beating analysts' consensus estimates of $0.09 by $0.01. The firm had revenue of $91.87 million during the quarter. The business's revenue for the quarter was up .9% on a year-over-year basis.

Analyst Ratings Changes

WLTH has been the subject of a number of research analyst reports. The Goldman Sachs Group reissued a "neutral" rating and set a $10.00 target price on shares of Wealthfront in a research report on Thursday. Royal Bank Of Canada set a $11.00 price objective on Wealthfront in a research note on Thursday. Weiss Ratings reissued a "sell (d)" rating on shares of Wealthfront in a research report on Monday, July 6th. Wells Fargo & Company decreased their target price on Wealthfront from $12.00 to $11.50 and set an "overweight" rating for the company in a research note on Tuesday, August 4th. Finally, Wall Street Zen raised Wealthfront from a "sell" rating to a "hold" rating in a report on Saturday, July 18th. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Wealthfront has an average rating of "Hold" and an average price target of $12.00.

Insider Activity at Wealthfront

In other news, VP Kal Iyer sold 28,498 shares of Wealthfront stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $8.46, for a total transaction of $241,093.08. Following the sale, the vice president owned 225,771 shares of the company's stock, valued at approximately $1,910,022.66. This trade represents a 11.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Julien Wetterwald sold 39,810 shares of the business's stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $8.46, for a total value of $336,792.60. Following the sale, the chief technology officer owned 727,052 shares in the company, valued at approximately $6,150,859.92. This represents a 5.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 136,565 shares of company stock worth $1,193,520 in the last three months. Corporate insiders own 27.36% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of WLTH. Royal Bank of Canada bought a new stake in Wealthfront in the 1st quarter valued at $27,000. Sandia Investment Management LP bought a new position in shares of Wealthfront during the 4th quarter worth about $44,000. Strs Ohio acquired a new stake in shares of Wealthfront during the 1st quarter valued at about $56,000. Barclays PLC bought a new stake in Wealthfront in the fourth quarter valued at about $136,000. Finally, Squarepoint Ops LLC bought a new stake in Wealthfront in the second quarter valued at about $90,000.

Wealthfront Stock Up 8.6%

The stock has a market cap of $1.53 billion and a price-to-earnings ratio of -9.98. The company's 50-day moving average is $9.33 and its 200-day moving average is $9.61.

Wealthfront Company Profile

Wealthfront NASDAQ: WLTH is a technology-driven wealth management firm that provides automated investment services to individual investors. Operating as a robo-advisor, the company uses algorithms and software to construct and manage diversified portfolios largely composed of low-cost exchange-traded funds (ETFs). Its platform is geared toward long-term, goal-based investing with an emphasis on passive strategies, automated rebalancing and straightforward user experience delivered through web and mobile applications.

The company’s product suite includes automated portfolio management, tax-loss harvesting and goal-planning tools that help clients set and track financial objectives.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.