WisdomTree (NYSE:WT) Announces Earnings Results

WisdomTree (NYSE:WT) announced its quarterly earnings results on Friday. The company reported $0.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.26 by $0.05, FiscalAI reports. The company had revenue of $177.20 million during the quarter, compared to the consensus estimate of $170.62 million. WisdomTree had a return on equity of 33.31% and a net margin of 11.26%.WisdomTree’s revenue for the quarter was up 57.3% on a year-over-year basis. During the same period in the previous year, the business 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 Performance

WT traded up $0.51 during trading on Friday, hitting $19.31. 3,275,414 shares of the stock were exchanged, compared to its average volume of 3,426,594. The company has a quick ratio of 4.18, a current ratio of 4.57 and a debt-to-equity ratio of 2.37. WisdomTree has a 1-year low of $10.69 and a 1-year high of $21.23. The stock has a fifty day moving average price of $18.65 and a two-hundred day moving average price of $17.15. The firm has a market capitalization of $2.95 billion, a P/E ratio of 47.11 and a beta of 1.18.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on WT shares. Zacks Research lowered WisdomTree from a “strong-buy” rating to a “hold” rating in a research report on Monday. The Goldman Sachs Group reiterated a “neutral” rating and issued a $16.80 price target on shares of WisdomTree in a research note on Tuesday, May 5th. Wall Street Zen cut shares of WisdomTree from a “buy” rating to a “hold” rating in a report on Saturday, June 20th. Oppenheimer boosted their price objective on shares of WisdomTree from $20.00 to $21.00 and gave the stock an “outperform” rating in a research report on Wednesday, April 29th. Finally, Raymond James Financial began coverage on shares of WisdomTree in a report on Tuesday, April 21st. They issued an “outperform” rating and a $20.00 target price for the company. Three analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $20.16.

Insider Activity at WisdomTree

In other news, COO R Jarrett Lilien sold 30,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $18.99, for a total transaction of $569,700.00. Following the transaction, the chief operating officer directly owned 1,110,245 shares in the company, valued at approximately $21,083,552.55. This trade represents a 2.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider David M. Yates sold 15,000 shares of the firm’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $18.06, for a total transaction of $270,900.00. Following the transaction, the insider directly owned 157,499 shares in the company, valued at $2,844,431.94. The trade was a 8.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 10.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On WisdomTree

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd increased its position in WisdomTree by 163.0% in the 4th 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 during the period. Quattro Advisors LLC acquired a new stake in WisdomTree during the 4th quarter worth approximately $31,000. Quarry LP grew its stake 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. grew its stake 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 position in shares of WisdomTree in the fourth quarter valued at approximately $122,000. Hedge funds and other institutional investors own 78.64% of the company’s stock.

About WisdomTree

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.