Wealthfront (NASDAQ:WLTH) VP Kal Iyer Sells 10,408 Shares

Wealthfront (NASDAQ:WLTH) VP Kal Iyer sold 10,408 shares of the firm’s stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $10.19, for a total value of $106,057.52. Following the completion of the transaction, the vice president directly owned 259,232 shares of the company’s stock, valued at $2,641,574.08. The trade was a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through 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 value of $360,345.59.

Wealthfront Stock Performance

WLTH opened at $10.10 on Friday. The company has a market cap of $1.58 billion and a price-to-earnings ratio of -10.86. Wealthfront has a one year low of $7.20 and a one year high of $14.88. The business’s fifty day moving average is $9.48 and its two-hundred day moving average is $9.70.

Wealthfront (NASDAQ:WLTH) last announced 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 business 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, analysts predict that Wealthfront will post 0.41 EPS for the current fiscal year.

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

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on WLTH. JPMorgan Chase & Co. cut their target price on shares of Wealthfront from $13.00 to $12.00 and set an “overweight” rating for the company in a research report on Friday, June 5th. Weiss Ratings reiterated a “sell (d)” rating on shares of Wealthfront in a research report on Monday, July 6th. Wall Street Zen raised shares of Wealthfront from a “sell” rating to a “hold” rating in a research note on Saturday, July 18th. The Goldman Sachs Group restated a “neutral” rating and set a $10.00 price objective on shares of Wealthfront in a research report on Thursday, September 10th. Finally, Wells Fargo & Company reduced their target price on Wealthfront from $12.00 to $11.50 and set an “overweight” rating on the stock in a research note on Tuesday, August 4th. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $12.00.

Institutional Inflows and Outflows

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

Wealthfront Company Profile

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.