WisdomTree (NYSE:WT) Posts Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• WisdomTree beat quarterly expectations: Earnings per share came in at $0.31 versus the $0.26 consensus estimate, while revenue reached $177.2 million, up 57.3% year over year and above forecasts.
• Growth and profitability remained strong: Assets under management rose to $162.9 billion, supported by $3.1 billion in quarterly net inflows, while adjusted operating margin expanded to 42.6% and the company repurchased approximately $29 million of stock.
• Some business areas were uneven: Ceres inflows slowed, European trading activity moderated and digital-asset products saw outflows; WisdomTree also reduced its interest-income guidance to $8 million from $10 million.

WisdomTree (NYSE:WT - Get Free Report) posted its earnings results on Friday. The company reported $0.31 earnings per share for the quarter, beating the consensus estimate of $0.26 by $0.05, FiscalAI reports. The firm had revenue of $177.20 million during the quarter, compared to the consensus estimate of $170.62 million. WisdomTree had a net margin of 11.26% and a return on equity of 33.31%. The firm's revenue for the quarter was up 57.3% on a year-over-year basis. During the same quarter last year, the firm earned $0.18 EPS.

Here are the key takeaways from WisdomTree's conference call:

• Record growth continued: Assets under management reached $162.9 billion, up 7% sequentially, with $3.1 billion of quarterly net inflows and a 13% annualized organic growth rate year to date across U.S. and European strategies.
• Profitability expanded significantly: Second-quarter revenue rose 57% year over year to $177.2 million, while adjusted operating margin reached 42.6%; adjusted EPS increased 72% year over year to $0.31.
• Atlantic House expands product capabilities: The acquisition added more than $4 billion in AUM and strengthens WisdomTree’s European, outcome-oriented, derivatives-based, and portfolio-solutions businesses, with approximately 15 ETFs planned across the U.S. and Europe over the next 18 months.
• Capital returns and tokenization remain major priorities: WisdomTree repurchased approximately $29 million of stock and expects ongoing buybacks, while management said its tokenization platform and potential tokenized ETF could represent substantial unrecognized value.
• Some areas remain uneven: Ceres inflows slowed during a fund transition, European trading activity moderated, and digital-asset products experienced some outflows; the company also lowered interest-income guidance to $8 million from $10 million.

WisdomTree Stock Up 2.7%

Shares of WisdomTree stock traded up $0.51 during trading hours on Friday, reaching $19.31. 3,275,414 shares of the company were exchanged, compared to its average volume of 3,426,594. The firm has a market cap of $2.95 billion, a PE ratio of 47.11 and a beta of 1.18. The company has a debt-to-equity ratio of 2.37, a quick ratio of 4.18 and a current ratio of 4.57. WisdomTree has a 1 year low of $10.69 and a 1 year high of $21.23. The stock's fifty day moving average is $18.65 and its 200 day moving average is $17.15.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Morgan Stanley set a $21.00 price target on WisdomTree in a research report on Wednesday. The Goldman Sachs Group reissued a "neutral" rating and set a $16.80 target price on shares of WisdomTree in a research note on Tuesday, May 5th. Weiss Ratings cut WisdomTree from a "buy (b)" rating to a "hold (c)" rating in a report on Friday, May 8th. Oppenheimer lifted their target price on WisdomTree from $20.00 to $21.00 and gave the company an "outperform" rating in a research report on Wednesday, April 29th. Finally, Northland Securities set a $22.00 price target on shares of WisdomTree in a research note on Tuesday, June 2nd. Three analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $20.16.

Insiders Place Their Bets

In other WisdomTree news, insider David M. Yates sold 15,000 shares of the stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $18.06, for a total value of $270,900.00. Following the sale, the insider owned 157,499 shares of the company's stock, valued at $2,844,431.94. This trade represents a 8.70% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO R Jarrett Lilien sold 30,000 shares of WisdomTree stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $18.99, for a total value of $569,700.00. Following the completion of the transaction, the chief operating officer owned 1,110,245 shares of the company's stock, valued at $21,083,552.55. The trade was a 2.63% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 10.10% of the company's stock.

Institutional Trading of WisdomTree

A number of large investors have recently made changes to their positions in WT. Caitong International Asset Management Co. Ltd raised its holdings in WisdomTree by 163.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,454 shares of the company's stock valued at $30,000 after acquiring an additional 1,521 shares in the last quarter. Quattro Advisors LLC acquired a new position in WisdomTree during the 4th quarter worth approximately $31,000. Quarry LP increased its position in shares of WisdomTree by 1,679.0% in the 3rd quarter. Quarry LP now owns 2,206 shares of the company's stock valued at $31,000 after purchasing an additional 2,082 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of WisdomTree by 32,311.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 8,751 shares of the company's stock valued at $107,000 after purchasing an additional 8,724 shares during the last quarter. Finally, Xponance LLC acquired a new stake in shares of WisdomTree in the 4th quarter valued at $122,000. 78.64% of the stock is currently owned by hedge funds and other institutional investors.

WisdomTree Company Profile

WisdomTree Investments, Inc NYSE: WT is a U.S.-based asset management firm specializing in exchange-traded funds (ETFs) and exchange-traded products (ETPs). Founded in 2006 by Jonathan Steinberg and headquartered in New York City, WisdomTree has developed a reputation for pioneering smart-beta and fundamentally weighted indexing approaches. The company designs strategies that seek to enhance returns and reduce volatility by weighting constituents based on dividends, earnings or other financial metrics rather than relying solely on market capitalization.

WisdomTree offers a broad suite of investment products covering equities, fixed income, currencies, commodities and digital assets.

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