Wealthfront (NASDAQ:WLTH) Given Average Recommendation of "Hold" by Analysts

Key Points

• Wealthfront has a consensus analyst rating of “Hold” from nine covering firms, with an average 12-month price target of $12.50. Recent calls were mixed, including downgrades from Wall Street Zen and Weiss Ratings, while RBC and Goldman Sachs also trimmed their targets.
• The stock last traded at $9.09, giving the company a $1.36 billion market cap. Its shares have ranged from $7.20 to $14.88 over the past year, and the company is currently trading below its 50-day moving average of $10.12.
• In its latest quarter, Wealthfront reported EPS of $0.07, missing estimates by $0.02, while revenue rose 7.1% year over year to $90.48 million. Insiders have also been selling shares, including recent sales by Lauren Lin and Jaleh Bisharat.

Wealthfront (NASDAQ:WLTH - Get Free Report) has earned an average recommendation of "Hold" from the nine research firms that are presently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, four have assigned a hold recommendation and four have assigned a buy recommendation to the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $12.50.

A number of research analysts have recently weighed in on WLTH shares. Wall Street Zen cut Wealthfront from a "hold" rating to a "sell" rating in a research report on Saturday, June 27th. The Goldman Sachs Group dropped their price objective on shares of Wealthfront from $12.00 to $10.50 and set a "neutral" rating for the company in a report on Thursday, July 2nd. Royal Bank Of Canada lowered their target price on Wealthfront from $14.00 to $13.00 and set an "outperform" rating for the company in a research report on Friday, June 5th. Weiss Ratings reiterated a "sell (d)" rating on shares of Wealthfront in a research report on Monday, July 6th. Finally, Keefe, Bruyette & Woods dropped their price objective on shares of Wealthfront from $11.00 to $10.50 and set a "market perform" rating for the company in a research note on Monday.

Wealthfront Stock Performance

WLTH stock opened at $9.09 on Wednesday. The company has a market capitalization of $1.36 billion and a P/E ratio of -8.83. The firm has a 50-day moving average price of $10.12. Wealthfront has a fifty-two week low of $7.20 and a fifty-two week high of $14.88.

Wealthfront (NASDAQ:WLTH - Get Free Report) last announced 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 company had revenue of $90.48 million for the quarter. The company's quarterly revenue was up 7.1% on a year-over-year basis. On average, sell-side analysts anticipate that Wealthfront will post 0.42 EPS for the current year.

Insiders Place Their Bets

In other Wealthfront news, insider Lauren Lin sold 4,840 shares of the company's stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $8.45, for a total value of $40,898.00. Following the transaction, the insider owned 158,092 shares of the company's stock, valued at $1,335,877.40. This represents a 2.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jaleh Bisharat sold 8,504 shares of the firm's stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $9.39, for a total transaction of $79,852.56. Following the completion of the transaction, the director directly owned 8,503 shares in the company, valued at $79,843.17. This represents a 50.00% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 136,565 shares of company stock worth $1,193,520. Insiders own 27.36% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Royal Bank of Canada purchased a new position in Wealthfront during the first quarter valued at approximately $27,000. Sandia Investment Management LP acquired a new position in Wealthfront during the 4th quarter valued at approximately $44,000. Strs Ohio acquired a new position in shares of Wealthfront in the 1st quarter valued at $56,000. SummitTX Capital L.P. purchased a new position in shares of Wealthfront in the first quarter worth about $131,000. Finally, Barclays PLC purchased a new position in Wealthfront during the 4th quarter worth approximately $136,000.

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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