Wealthfront (NASDAQ:WLTH) Shares Gap Down Following Weak Earnings

Shares of Wealthfront (NASDAQ:WLTH) gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $11.50, but opened at $9.93. Wealthfront shares last traded at $9.8860, with a volume of 380,482 shares changing hands.

The company reported $0.07 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.02). The firm had revenue of $90.48 million for the quarter. The business’s revenue for the quarter was up 7.1% on a year-over-year basis.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the company. The Goldman Sachs Group decreased their target price on Wealthfront from $12.00 to $10.50 and set a “neutral” rating on the stock in a research report on Thursday, March 12th. Royal Bank Of Canada reissued an “outperform” rating and set a $13.00 price target on shares of Wealthfront in a report on Friday. Weiss Ratings assumed coverage on Wealthfront in a research note on Wednesday, March 11th. They issued a “sell (d)” rating for the company. JPMorgan Chase & Co. decreased their price objective on Wealthfront from $16.00 to $10.00 and set an “overweight” rating on the stock in a report on Thursday, March 12th. Finally, Keefe, Bruyette & Woods reissued a “market perform” rating and set a $9.50 target price (down from $13.50) on shares of Wealthfront in a report on Thursday, March 12th. Four research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $12.17.

Institutional Investors Weigh In On Wealthfront

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

Wealthfront Trading Down 12.5%

The stock’s fifty day moving average price is $10.85.

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.