Wealthfront (NASDAQ:WLTH) Price Target Cut to $10.50 by Analysts at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods cut Wealthfront’s price target to $10.50 from $11.00 and kept a market perform rating, implying about 11.3% upside from the current price.
• Other analysts have also turned more cautious, with multiple firms lowering targets and ratings; the stock now carries a consensus Hold rating and a $12.50 average price target.
• Wealthfront reported Q4 EPS of $0.07, missing estimates, while revenue rose 7.1% year over year to $90.48 million. Insiders have also been selling shares recently, including the director and CTO in pre-arranged trading plans.

Wealthfront (NASDAQ:WLTH - Get Free Report) had its target price decreased by stock analysts at Keefe, Bruyette & Woods from $11.00 to $10.50 in a research report issued on Monday,Benzinga reports. The firm presently has a "market perform" rating on the stock. Keefe, Bruyette & Woods' price target indicates a potential upside of 11.29% from the company's current price.

Several other research analysts have also issued reports on WLTH. Royal Bank Of Canada reduced their target price on Wealthfront from $14.00 to $13.00 and set an "outperform" rating on the stock in a research report on Friday, June 5th. JPMorgan Chase & Co. lowered their target price on shares of Wealthfront from $13.00 to $12.00 and set an "overweight" rating for the company in a research note on Friday, June 5th. The Goldman Sachs Group cut their price target on shares of Wealthfront from $12.00 to $10.50 and set a "neutral" rating on the stock in a research note on Thursday, July 2nd. Wall Street Zen downgraded shares of Wealthfront from a "hold" rating to a "sell" rating in a research note on Saturday, June 27th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Wealthfront in a research report on Monday, July 6th. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $12.50.

Wealthfront Stock Performance

NASDAQ:WLTH opened at $9.44 on Monday. The firm has a 50-day simple moving average of $10.19. Wealthfront has a one year low of $7.20 and a one year high of $14.88. The company has a market cap of $1.41 billion and a price-to-earnings ratio of -9.09.

Wealthfront (NASDAQ:WLTH - Get Free Report) last issued its quarterly earnings data 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 business's revenue was up 7.1% compared to the same quarter last year. Sell-side analysts expect that Wealthfront will post 0.42 EPS for the current fiscal year.

Insider Activity

In other Wealthfront news, Director Jaleh Bisharat sold 8,503 shares of Wealthfront stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $9.50, for a total value of $80,778.50. Following the completion of the transaction, the director owned 8,503 shares of the company's stock, valued at approximately $80,778.50. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing 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 39,810 shares of Wealthfront stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $8.46, for a total value of $336,792.60. Following the completion of the transaction, the chief technology officer owned 727,052 shares of the company's stock, valued at approximately $6,150,859.92. This represents a 5.19% decrease in their position. 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 136,565 shares of company stock worth $1,193,520 over the last 90 days. Company insiders own 27.36% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in WLTH. Royal Bank of Canada acquired a new position in Wealthfront during the first quarter worth $27,000. Sandia Investment Management LP acquired a new stake in Wealthfront in the 4th quarter worth about $44,000. Strs Ohio purchased a new position in shares of Wealthfront in the first quarter valued at approximately $56,000. Barclays PLC purchased a new stake in shares of Wealthfront during the fourth quarter worth approximately $136,000. Finally, Symmetry Investments LP acquired a new stake in Wealthfront during the 4th quarter worth $190,000.

About Wealthfront

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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