Wealthfront (NASDAQ:WLTH) Insider Lauren Lin Sells 16,117 Shares of Stock

Wealthfront (NASDAQ:WLTH) insider Lauren Lin sold 16,117 shares of Wealthfront stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $10.73, for a total value of $172,935.41. Following the sale, the insider directly owned 181,385 shares of the company’s stock, valued at $1,946,261.05. This represents a 8.16% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Lauren Lin also recently made the following trade(s):

• On Wednesday, September 16th, Lauren Lin sold 4,995 shares of Wealthfront stock. The shares were sold at an average price of $10.19, for a total transaction of $50,899.05.

Wealthfront Stock Down 0.7%

Shares of NASDAQ:WLTH opened at $10.10 on Friday. Wealthfront has a 12-month low of $7.20 and a 12-month high of $14.88. The company’s 50 day moving average price is $9.48 and its two-hundred day moving average price is $9.70. The firm has a market cap of $1.58 billion and a PE ratio of -10.86.

Wealthfront (NASDAQ:WLTH) last released its quarterly earnings results on Wednesday, September 9th. The company reported $0.10 earnings per share for the quarter, beating analysts’ consensus estimates of $0.09 by $0.01. The company 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 company’s revenue for the quarter was up .9% compared to the same quarter last year. On average, research analysts expect that Wealthfront will post 0.41 EPS for the current year.

Hedge Funds Weigh In On Wealthfront

Large investors have recently bought and sold shares of the company. Index Venture Associates VI Ltd acquired a new stake in shares of Wealthfront during the fourth quarter valued at about $128,567,000. BlackRock Inc. acquired a new position in shares of Wealthfront in the second quarter valued at approximately $74,766,000. North Reef Capital Management LP raised its holdings in Wealthfront by 135.2% in the 1st quarter. North Reef Capital Management LP now owns 2,885,257 shares of the company’s stock valued at $26,689,000 after buying an additional 1,658,624 shares during the last quarter. Ieq Capital LLC acquired a new stake in Wealthfront during the 2nd quarter worth approximately $24,706,000. Finally, Granahan Investment Management LLC acquired a new stake in Wealthfront during the 4th quarter worth approximately $18,837,000.

Wealthfront News Roundup

Here are the key news stories impacting Wealthfront this week:

• Positive Sentiment: Platform assets rose 12% year over year to $99 billion in the fiscal second quarter and surpassed $100 billion by the end of August. Funded clients increased 14% to 1.51 million, reinforcing Wealthfront’s long-term growth potential. Wealthfront Tops $100 Billion in Platform Assets
• Positive Sentiment: Wealthfront reported quarterly earnings of $0.10 per share, exceeding the $0.09 analyst consensus, with revenue of $91.87 million. Analysts currently expect approximately $0.41 in earnings per share for the full year.
• Neutral Sentiment: The company’s asset and client growth has not yet translated into comparable financial growth: revenue increased only about 1% year over year, while Wealthfront continued to post a negative net margin and negative return on equity. This raises questions about the pace of margin improvement.
• Neutral Sentiment: Analyst sentiment remains mixed. Goldman Sachs maintained a neutral rating with a $10 target, while RBC and JPMorgan reduced their price targets to $11 and $12, respectively, but retained outperform or overweight ratings. The broader consensus is “Hold,” with a $12 target price.
• Negative Sentiment: Executives and other insiders disclosed roughly $1.34 million in combined stock sales, including transactions by the CFO, CTO, two vice presidents, another insider and a director. The sales could weigh on sentiment, although most were explicitly made for tax withholding and one occurred under a pre-arranged Rule 10b5-1 plan. Wealthfront Insider Sales

Analysts Set New Price Targets

Several equities analysts have recently commented on the stock. Keefe, Bruyette & Woods dropped their target price on shares of Wealthfront from $11.00 to $10.50 and set a “market perform” rating for the company in a research report on Monday, July 13th. Royal Bank Of Canada reduced their target price on Wealthfront from $13.00 to $11.00 and set an “outperform” rating on the stock in a report on Thursday, September 10th. The Goldman Sachs Group reiterated a “neutral” rating and issued a $10.00 price target on shares of Wealthfront in a research note on Thursday, September 10th. Wells Fargo & Company lowered their price target on Wealthfront from $12.00 to $11.50 and set an “overweight” rating for the company in a report on Tuesday, August 4th. Finally, JPMorgan Chase & Co. reduced their price objective on Wealthfront from $13.00 to $12.00 and set an “overweight” rating on the stock in a research note on Friday, June 5th. Four equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $12.00.

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.