Wealthfront (NASDAQ:WLTH) Trading Down 5.7% - Here's Why

Key Points

• Wealthfront (NASDAQ:WLTH) shares fell about 5.7% mid-day to roughly $8.40, trading as low as $8.50 on sharply lower volume (208,130 shares, down ~86% versus the average).
• Analysts have trimmed price targets recently (e.g., Wells Fargo to $12.50, KBW to $13.50, RBC to $14.00), but the consensus remains a “Moderate Buy” with an average target of $13.00.
• Wealthfront reported quarterly EPS of $0.21 and revenue of $93.22 million, while several small institutional investors established modest new positions in the fourth quarter.

Wealthfront (NASDAQ:WLTH - Get Free Report) fell 5.7% during mid-day trading on Wednesday . The company traded as low as $8.50 and last traded at $8.4020. 208,130 shares changed hands during trading, a decline of 86% from the average session volume of 1,447,053 shares. The stock had previously closed at $8.91.

Wall Street Analyst Weigh In

WLTH has been the topic of several analyst reports. Wells Fargo & Company lowered their target price on shares of Wealthfront from $15.50 to $12.50 and set an "overweight" rating on the stock in a report on Thursday, March 5th. The Goldman Sachs Group set a $12.00 price target on Wealthfront in a research report on Tuesday, January 20th. Keefe, Bruyette & Woods reduced their price objective on Wealthfront from $16.50 to $13.50 and set an "outperform" rating on the stock in a research note on Monday. Royal Bank Of Canada lowered their target price on Wealthfront from $17.00 to $14.00 and set an "outperform" rating for the company in a research note on Monday. Finally, Wall Street Zen upgraded Wealthfront from a "sell" rating to a "hold" rating in a research report on Friday, January 23rd. Three equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $13.00.

Wealthfront Stock Down 4.1%

Wealthfront (NASDAQ:WLTH - Get Free Report) last announced its earnings results on Monday, January 12th. The company reported $0.21 EPS for the quarter. The business had revenue of $93.22 million for the quarter.

Institutional Trading of Wealthfront

Several hedge funds and other institutional investors have recently modified their holdings of WLTH. Sandia Investment Management LP acquired a new stake in Wealthfront during the fourth quarter worth approximately $44,000. Barclays PLC acquired a new stake in Wealthfront during the 4th quarter worth approximately $136,000. Symmetry Investments LP acquired a new stake in Wealthfront during the 4th quarter worth approximately $190,000. Realta Investment Advisors acquired a new position in Wealthfront in the 4th quarter valued at $194,000. Finally, Hudson Bay Capital Management LP bought a new position in Wealthfront during the 4th quarter worth $245,000.

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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