Wall Street Zen Upgrades Wealthfront (NASDAQ:WLTH) to Hold

Key Points

• Wall Street Zen upgraded Wealthfront from sell to hold, aligning with a broader analyst view that currently rates the stock a consensus Hold with an average target price of $12.50.
• Wealthfront shares were down 2.0% and opened at $9.26, near the 50-day moving average of $10.00 and well below the $14.88 52-week high. The company has a market cap of $1.38 billion and a negative P/E of -8.99.
• The company recently reported Q2 EPS of $0.07, missing estimates by $0.02, though revenue rose 7.1% year over year to $90.48 million. Insiders also sold shares over the past 90 days, including CTO Julien Wetterwald and Director Jaleh Bisharat.

Wealthfront (NASDAQ:WLTH - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued on Saturday.

Several other research firms have also recently weighed in on WLTH. Keefe, Bruyette & Woods decreased their price objective on shares of Wealthfront from $11.00 to $10.50 and set a "market perform" rating for the company in a report on Monday, July 13th. The Goldman Sachs Group dropped their target price on shares of Wealthfront from $12.00 to $10.50 and set a "neutral" rating on the stock in a report on Thursday, July 2nd. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Wealthfront in a research report on Monday, July 6th. Royal Bank Of Canada decreased their target price on shares of Wealthfront from $14.00 to $13.00 and set an "outperform" rating for the company in a research note on Friday, June 5th. Finally, JPMorgan Chase & Co. lowered their price target on Wealthfront from $13.00 to $12.00 and set an "overweight" rating on the stock in a report on Friday, June 5th. Four research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Wealthfront currently has a consensus rating of "Hold" and an average target price of $12.50.

Wealthfront Trading Down 2.0%

Shares of NASDAQ:WLTH opened at $9.26 on Friday. Wealthfront has a fifty-two week low of $7.20 and a fifty-two week high of $14.88. The stock has a 50-day simple moving average of $10.00. The stock has a market cap of $1.38 billion and a price-to-earnings ratio of -8.99.

Wealthfront (NASDAQ:WLTH - Get Free Report) last posted its earnings results on Thursday, June 4th. The company reported $0.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.02). The business had revenue of $90.48 million for the quarter. The business's quarterly revenue was up 7.1% on a year-over-year basis. As a group, sell-side analysts anticipate that Wealthfront will post 0.42 EPS for the current year.

Insider Buying and Selling at Wealthfront

In other Wealthfront news, CTO Julien Wetterwald sold 39,810 shares of the company'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 transaction of $336,792.60. Following the completion of the sale, the chief technology officer directly owned 727,052 shares of the company's stock, valued at approximately $6,150,859.92. This represents a 5.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jaleh Bisharat sold 8,503 shares of the stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $9.50, for a total transaction of $80,778.50. Following the completion of the transaction, the director owned 8,503 shares in the company, valued at $80,778.50. The trade was a 50.00% 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 sold a total of 136,565 shares of company stock valued at $1,193,520 in the last ninety days. Corporate insiders own 27.36% of the company's stock.

Hedge Funds Weigh In On Wealthfront

Institutional investors and hedge funds have recently bought and sold shares of the stock. Royal Bank of Canada purchased a new position in Wealthfront during the first quarter valued at $27,000. Sandia Investment Management LP purchased a new stake in Wealthfront in the fourth quarter worth about $44,000. Strs Ohio purchased a new stake in Wealthfront in the first quarter worth about $56,000. Barclays PLC bought a new position in shares of Wealthfront in the fourth quarter worth about $136,000. Finally, Symmetry Investments LP bought a new position in shares of Wealthfront in the fourth quarter worth about $190,000.

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.

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