Wealthfront (NASDAQ:WLTH) Stock Falls 4.9% – Here’s Why

Wealthfront (NASDAQ:WLTH)’s share price was down 4.9% during trading on Tuesday. The company traded as low as $10.22 and last traded at $10.1460. 532,948 shares changed hands during mid-day trading, a decline of 69% from the average daily volume of 1,739,001 shares. The stock had previously closed at $10.67.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the company. Royal Bank Of Canada cut their target price on Wealthfront from $13.00 to $11.00 and set an “outperform” rating on the stock in a research report on Thursday, September 10th. Weiss Ratings reissued a “sell (d)” rating on shares of Wealthfront in a research report on Friday, October 2nd. The Goldman Sachs Group restated a “neutral” rating and issued a $11.00 target price on shares of Wealthfront in a research note on Wednesday, October 7th. Needham & Company LLC reaffirmed a “buy” rating and issued a $13.00 target price on shares of Wealthfront in a research report on Wednesday, October 7th. Finally, Wells Fargo & Company began coverage on Wealthfront in a research note on Thursday, October 1st. They set an “overweight” rating and a $11.50 price target on the stock. Five investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $12.29.

Wealthfront Price Performance

The firm has a market cap of $1.58 billion and a P/E ratio of -10.87. The company has a fifty day moving average of $9.83 and a 200-day moving average of $9.95.

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 for the quarter. Wealthfront had a negative net margin of 19.42% and a negative return on equity of 14.62%. Wealthfront’s quarterly revenue was up .9% compared to the same quarter last year. On average, sell-side analysts expect that Wealthfront will post 0.41 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CTO Julien Wetterwald sold 26,138 shares of the company’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $10.10, for a total value of $263,993.80. Following the transaction, the chief technology officer owned 696,525 shares in the company, valued at approximately $7,034,902.50. This represents a 3.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Lauren Lin sold 4,574 shares of the stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $10.10, for a total value of $46,197.40. Following the transaction, the insider owned 171,816 shares of the company’s stock, valued at $1,735,341.60. The trade was a 2.59% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 270,688 shares of company stock valued at $2,796,816. 27.36% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of WLTH. Congress Asset Management Co. boosted its holdings in shares of Wealthfront by 22.1% in the third quarter. Congress Asset Management Co. now owns 1,129,703 shares of the company’s stock worth $11,726,000 after acquiring an additional 204,498 shares during the period. Whetstone Capital Advisors LLC increased its stake in Wealthfront by 10.6% in the 2nd quarter. Whetstone Capital Advisors LLC now owns 604,160 shares of the company’s stock worth $5,401,000 after acquiring an additional 57,753 shares during the last quarter. Squarepoint Ops LLC purchased a new stake in Wealthfront in the second quarter valued at approximately $90,000. Arizona State Retirement System purchased a new position in Wealthfront in the 2nd quarter worth approximately $102,000. Finally, AXQ Capital LP purchased a new position in Wealthfront in the 2nd quarter worth approximately $105,000.

Wealthfront Company Profile

Wealthfront, Inc is a U.S.-focused financial technology company that provides automated investing, digital financial planning and cash-management services through an online platform. Its services are designed to help individuals manage portfolios, save for financial goals and oversee their finances without relying on traditional branch-based advisory services.

The company’s offerings have included diversified, automated investment portfolios; a cash account for saving and managing everyday funds; financial-planning tools; and lending products such as portfolio lines of credit.