Wealthfront (NASDAQ:WLTH) Stock Price Up 7.9% After Better-Than-Expected Earnings

Wealthfront (NASDAQ:WLTH)’s share price shot up 7.9% during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $10.23 and last traded at $10.2120. 527,726 shares changed hands during trading, a decline of 65% from the average session volume of 1,496,695 shares. The stock had previously closed at $9.46.

The company reported $0.10 EPS for the quarter, beating analysts’ consensus estimates of $0.09 by $0.01. The firm had revenue of $91.87 million during the quarter. The business’s revenue for the quarter was up .9% on a year-over-year basis.

Analyst Ratings Changes

WLTH has been the subject of a number of research analyst reports. The Goldman Sachs Group reissued a “neutral” rating and set a $10.00 target price on shares of Wealthfront in a research report on Thursday. Royal Bank Of Canada set a $11.00 price objective on Wealthfront in a research note on Thursday. Weiss Ratings reissued a “sell (d)” rating on shares of Wealthfront in a research report on Monday, July 6th. Wells Fargo & Company decreased their target price on Wealthfront from $12.00 to $11.50 and set an “overweight” rating for the company in a research note on Tuesday, August 4th. Finally, Wall Street Zen raised Wealthfront from a “sell” rating to a “hold” rating in a report on Saturday, July 18th. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Wealthfront has an average rating of “Hold” and an average price target of $12.00.

Insider Activity at Wealthfront

In other news, VP Kal Iyer sold 28,498 shares of Wealthfront stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $8.46, for a total transaction of $241,093.08. Following the sale, the vice president owned 225,771 shares of the company’s stock, valued at approximately $1,910,022.66. This trade represents a 11.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Julien Wetterwald sold 39,810 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $8.46, for a total value of $336,792.60. Following the sale, the chief technology officer owned 727,052 shares in the company, valued at approximately $6,150,859.92. This represents a 5.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 136,565 shares of company stock worth $1,193,520 in the last three months. Corporate insiders own 27.36% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of WLTH. Royal Bank of Canada bought a new stake in Wealthfront in the 1st quarter valued at $27,000. Sandia Investment Management LP bought a new position in shares of Wealthfront during the 4th quarter worth about $44,000. Strs Ohio acquired a new stake in shares of Wealthfront during the 1st quarter valued at about $56,000. Barclays PLC bought a new stake in Wealthfront in the fourth quarter valued at about $136,000. Finally, Squarepoint Ops LLC bought a new stake in Wealthfront in the second quarter valued at about $90,000.

Wealthfront Stock Up 8.6%

The stock has a market cap of $1.53 billion and a price-to-earnings ratio of -9.98. The company’s 50-day moving average is $9.33 and its 200-day moving average is $9.61.

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.