Insider Selling: Wealthfront (NASDAQ:WLTH) VP Sells $106,057.52 in Stock

Wealthfront (NASDAQ:WLTH) VP Kal Iyer sold 10,408 shares of the business’s stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $10.19, for a total transaction of $106,057.52. Following the completion of the sale, the vice president owned 259,232 shares of the company’s stock, valued at approximately $2,641,574.08. This represents a 3.86% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

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

• 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 Down 0.5%

WLTH stock traded down $0.05 during trading on Thursday, hitting $10.12. 3,124,872 shares of the company’s stock traded hands, compared to its average volume of 1,606,351. The firm has a market capitalization of $1.58 billion and a P/E ratio of -10.88. The business has a fifty day simple moving average of $9.46 and a two-hundred day simple moving average of $9.69. Wealthfront has a 1 year low of $7.20 and a 1 year high of $14.88.

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

Analyst Upgrades and Downgrades

WLTH has been the subject of several analyst reports. Wall Street Zen upgraded Wealthfront from a “sell” rating to a “hold” rating in a report on Saturday, July 18th. JPMorgan Chase & Co. cut their price objective on shares of Wealthfront from $13.00 to $12.00 and set an “overweight” rating on the stock in a report on Friday, June 5th. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $10.00 price target on shares of Wealthfront in a report on Thursday, September 10th. Keefe, Bruyette & Woods cut their target price on Wealthfront from $11.00 to $10.50 and set a “market perform” rating on the stock in a research report on Monday, July 13th. Finally, Weiss Ratings restated 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 stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $12.00.

Institutional Trading of Wealthfront

A number of hedge funds have recently modified their holdings of WLTH. Whetstone Capital Advisors LLC lifted its holdings in Wealthfront by 10.6% in the second quarter. Whetstone Capital Advisors LLC now owns 604,160 shares of the company’s stock valued at $5,401,000 after acquiring an additional 57,753 shares during the period. Squarepoint Ops LLC acquired a new stake in Wealthfront during the second quarter valued at $90,000. Arizona State Retirement System purchased a new position in Wealthfront in the second quarter valued at $102,000. AXQ Capital LP acquired a new position in shares of Wealthfront in the second quarter worth about $105,000. Finally, ICONIQ Capital LLC purchased a new position in shares of Wealthfront in the 2nd quarter valued at about $111,000.

Wealthfront News Summary

Here are the key news stories impacting Wealthfront this week:

• Positive Sentiment: Wealthfront’s platform assets surpassed $100 billion by the end of August, while second-quarter funded clients increased 14% year over year to 1.51 million. Platform assets rose 12% to $99 billion, supporting the long-term growth story. Wealthfront Tops $100 Billion in Platform Assets
• Positive Sentiment: Second-quarter earnings exceeded expectations, with earnings per share of $0.10 versus the $0.09 consensus estimate. Revenue reached $91.9 million, and analysts expect approximately $0.41 in full-year EPS.
• Neutral Sentiment: The company’s growth is not yet translating proportionally into revenue: quarterly revenue increased only about 1% year over year despite the 12% increase in platform assets. Wealthfront also remains unprofitable, with a negative net margin of 19.42% and negative return on equity of 14.62%. Wealthfront Earnings Call: Growth Strong, Margins Tested
• Negative Sentiment: Several executives and insiders reported sales totaling roughly $1.34 million, including transactions by the CFO, CTO, two vice presidents, a director and another insider. Most sales were explicitly made to cover tax-withholding obligations related to vested equity awards, which reduces their signaling value; the director’s sale was conducted under a pre-arranged Rule 10b5-1 plan. Nevertheless, the volume of insider selling can weigh on investor confidence and add near-term supply.

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.