Wealthfront (NASDAQ:WLTH) VP Kal Iyer Sells 26,738 Shares

Wealthfront (NASDAQ:WLTH) VP Kal Iyer sold 26,738 shares of the business’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $10.11, for a total value of $270,321.18. Following the sale, the vice president owned 232,494 shares of the company’s stock, valued at approximately $2,350,514.34. The trade was a 10.31% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Kal Iyer also recently made the following trade(s):

• On Wednesday, September 16th, Kal Iyer sold 10,408 shares of Wealthfront stock. The shares were sold at an average price of $10.19, for a total transaction of $106,057.52.
• On Tuesday, September 15th, Kal Iyer sold 33,583 shares of Wealthfront stock. The stock was sold at an average price of $10.73, for a total transaction of $360,345.59.

Wealthfront Stock Performance

WLTH stock opened at $10.10 on Friday. The stock has a market cap of $1.58 billion and a P/E ratio of -10.86. Wealthfront has a twelve month low of $7.20 and a twelve month high of $14.88. The company’s 50 day moving average is $9.49 and its two-hundred day moving average is $9.71.

Wealthfront (NASDAQ:WLTH) last issued its earnings results on Wednesday, September 9th. The company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.01. The business had revenue of $91.87 million during the quarter. Wealthfront had a negative net margin of 19.42% and a negative return on equity of 14.62%. The business’s revenue for the quarter was up .9% on a year-over-year basis. On average, equities research analysts predict that Wealthfront will post 0.41 earnings per share for the current year.

Analysts Set New Price Targets

A number of brokerages have weighed in on WLTH. Wall Street Zen upgraded Wealthfront from a “sell” rating to a “hold” rating in a research note on Saturday, July 18th. The Goldman Sachs Group reiterated a “neutral” rating and set a $10.00 price target on shares of Wealthfront in a research note on Thursday, September 10th. Royal Bank Of Canada lowered their price objective on shares of Wealthfront from $13.00 to $11.00 and set an “outperform” rating on the stock in a research report on Thursday, September 10th. 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, Weiss Ratings reiterated a “sell (d)” rating on shares of Wealthfront in a research note on Monday, July 6th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $12.00.

Key Stories Impacting Wealthfront

Here are the key news stories impacting Wealthfront this week:

• Positive Sentiment: Wealthfront’s platform assets increased 12% year over year to $99 billion in the second quarter and exceeded $100 billion by the end of August. Funded clients rose 14% to 1.51 million, supporting the company’s long-term growth story. Wealthfront Tops $100 Billion in Platform Assets
• Positive Sentiment: Recent quarterly earnings modestly exceeded expectations, with adjusted earnings of $0.10 per share versus the $0.09 consensus and revenue of $91.87 million. Institutional interest also remains notable, with new or increased positions reported by firms including Index Ventures, BlackRock and North Reef Capital.
• Neutral Sentiment: Growth in assets and clients has not yet translated into strong financial expansion: revenue rose only about 1% year over year, while Wealthfront continues to report a negative net margin of 19.42% and negative return on equity of 14.62%. Investors are likely focused on whether scale can improve profitability.
• Neutral Sentiment: Analyst views remain cautious. Goldman Sachs maintained a neutral rating with a $10 target, while RBC lowered its target to $11 but retained an outperform rating. The broader consensus is “Hold,” with an average target near $12, suggesting limited near-term conviction.
• Negative Sentiment: Multiple insiders sold shares, including CFO Alan Imberman, CTO Julien Wetterwald, VP Kal Iyer and insider Lauren Lin. The latest reported transactions totaled roughly $1.35 million, including the CFO’s sale of 76,540 shares and the VP’s sale of 26,738 shares. These sales may pressure sentiment, although the transactions were conducted under pre-arranged Rule 10b5-1 plans. Wealthfront Insider Sales
• Negative Sentiment: Additional insider sales over the preceding days were primarily disclosed as transactions to cover tax withholding obligations tied to vested equity awards. While less bearish than discretionary selling, the repeated selling pattern remains a potential overhang for WLTH.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Royal Bank of Canada purchased a new stake in shares of Wealthfront during the first quarter worth approximately $27,000. Strs Ohio purchased a new position in Wealthfront in the 1st quarter valued at $56,000. Squarepoint Ops LLC acquired a new position in Wealthfront in the 2nd quarter valued at $90,000. Arizona State Retirement System acquired a new position in Wealthfront in the 2nd quarter valued at $102,000. Finally, AXQ Capital LP purchased a new position in Wealthfront during the 2nd quarter worth $105,000.

About Wealthfront

Wealthfront, Inc is a U.S.-based digital wealth management company that provides automated investing, financial planning and cash management services through an online platform and mobile applications. The company is designed to help individuals manage their finances with technology-driven tools and diversified investment portfolios.

Its offerings have included automated investment accounts, tax-efficient portfolio management, financial planning tools, high-yield cash management products and lending services.