Wealthfront (NASDAQ:WLTH) Price Target Lowered to $11.50 at Wells Fargo & Company

Key Points

• Wells Fargo lowered Wealthfront’s price target to $11.50 from $12.00 while maintaining an “overweight” rating, implying roughly 19% upside from the prior close.
• Analyst sentiment is mixed: Wealthfront has a consensus “Hold” rating and an average price target of $12.42, based on four Buy, four Hold and one Sell rating.
• Shares opened at $9.66 after the company reported quarterly EPS of $0.07, below the $0.09 consensus estimate, while revenue rose 7.1% year over year to $90.48 million. Insiders have sold 136,565 shares worth about $1.19 million over the past 90 days.

Wealthfront (NASDAQ:WLTH - Get Free Report) had its price objective reduced by investment analysts at Wells Fargo & Company from $12.00 to $11.50 in a note issued to investors on Tuesday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Wells Fargo & Company's target price would suggest a potential upside of 19.05% from the stock's previous close.

Several other equities analysts have also recently issued reports on WLTH. Weiss Ratings reiterated a "sell (d)" rating on shares of Wealthfront in a research report on Monday, July 6th. Royal Bank Of Canada lowered their price objective on Wealthfront from $14.00 to $13.00 and set an "outperform" rating for the company in a research report on Friday, June 5th. Wall Street Zen upgraded shares of Wealthfront from a "sell" rating to a "hold" rating in a research note on Saturday, July 18th. Keefe, Bruyette & Woods dropped their price objective on shares of Wealthfront from $11.00 to $10.50 and set a "market perform" rating on the stock in a research note on Monday, July 13th. Finally, JPMorgan Chase & Co. dropped their price target on Wealthfront from $13.00 to $12.00 and set an "overweight" rating on the stock in a research report on Friday, June 5th. Four 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. According to MarketBeat, Wealthfront has an average rating of "Hold" and a consensus price target of $12.42.

Wealthfront Stock Up 1.8%

Shares of WLTH opened at $9.66 on Tuesday. The firm has a fifty day simple moving average of $9.49 and a two-hundred day simple moving average of $9.49. Wealthfront has a twelve month low of $7.20 and a twelve month high of $14.88. The stock has a market capitalization of $1.44 billion and a P/E ratio of -9.38.

Wealthfront (NASDAQ:WLTH - Get Free Report) last released its quarterly earnings results on Thursday, June 4th. The company reported $0.07 EPS for the quarter, missing analysts' consensus estimates of $0.09 by ($0.02). The business had revenue of $90.48 million during the quarter. The company's quarterly 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.

Insiders Place Their Bets

In other news, VP Kal Iyer sold 45,772 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $8.92, for a total transaction of $408,286.24. Following the transaction, the vice president directly owned 254,269 shares of the company's stock, valued at $2,268,079.48. This represents a 15.26% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Lauren Lin sold 4,840 shares of Wealthfront 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 completion of the sale, the insider directly owned 158,092 shares of the company's stock, valued at $1,335,877.40. The trade was a 2.97% 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 a total of 136,565 shares of company stock worth $1,193,520 in the last 90 days. Corporate insiders own 27.36% of the company's stock.

Institutional Investors Weigh In On Wealthfront

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Teacher Retirement System of Texas purchased a new position in shares of Wealthfront in the fourth quarter worth approximately $2,310,000. Teachers Retirement System of The State of Kentucky bought a new position in shares of Wealthfront in the fourth quarter worth about $453,000. UBS Group AG bought a new position in shares of Wealthfront in the fourth quarter worth approximately $2,243,000. Wealthfront Advisers LLC purchased a new position in shares of Wealthfront during the 4th quarter valued at $326,000. Finally, Jennison Associates LLC bought a new position in shares of Wealthfront in the fourth quarter worth about $4,396,000.

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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