Wealthfront (NASDAQ:WLTH) Trading Down 5.7% Following Weak Earnings

Shares of Wealthfront (NASDAQ:WLTH) were down 5.7% during trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $8.50 and last traded at $8.4020. Approximately 208,130 shares changed hands during trading, a decline of 86% from the average daily volume of 1,447,053 shares. The stock had previously closed at $8.91.

The company reported ($1.31) earnings per share for the quarter, missing the consensus estimate of ($1.24) by ($0.07). The company had revenue of $96.14 million during the quarter, compared to the consensus estimate of $91.95 million.

Key Stories Impacting Wealthfront

Here are the key news stories impacting Wealthfront this week:

• Positive Sentiment: Record revenue and assets: Wealthfront reported a quarterly record in revenue and record full?year revenue of $365.0M with platform assets rising to $94.1B — evidence of ongoing core business growth. Wealthfront Reports Fiscal Fourth Quarter and Full Year 2026 Results
• Positive Sentiment: Share repurchase plan announced, which can support the stock over time by reducing float and signaling management confidence. Wealthfront Announces Record Results and Share Repurchase Plan
• Neutral Sentiment: Mixed earnings: Revenue beat estimates ($96.1M vs. ~$91.9M consensus) but EPS missed (loss per share of $1.31 vs. -$1.24 expected), producing a mixed fundamental read that explains volatile trading. Earnings Press Release / Slide Deck
• Neutral Sentiment: Analyst revisions: Several firms trimmed price targets after the quarter (JPMorgan, Goldman Sachs, Keefe, Wells Fargo), leaving mixed ratings (some still “overweight”). These cuts reduce near?term upside expectations even if coverage stays constructive. Analyst price target changes
• Negative Sentiment: Large cash outflows: The quarter included ~$360M of cash management outflows, which market reports cite as the main driver of the share decline because they pressure fee revenue and AUM trends. Cash outflows reported
• Negative Sentiment: One?time IPO charges: WLTH recorded about $135M in IPO?related charges contributing to the large GAAP loss for the quarter, which amplified the EPS miss and hurt sentiment. IPO charges noted
• Negative Sentiment: Securities?litigation notices: Two law firms (Faruqi & Faruqi; Bleichmar Fonti & Auld) have launched investigations into WLTH, increasing legal risk and potential headline volatility. Faruqi shareholder alert BFA law alert

Analysts Set New Price Targets

WLTH has been the subject of a number of recent research reports. Zacks Research raised shares of Wealthfront to a “hold” rating in a research report on Thursday, January 15th. Keefe, Bruyette & Woods restated a “market perform” rating and issued a $9.50 price objective (down from $13.50) on shares of Wealthfront in a report on Thursday. Citizens Jmp began coverage on shares of Wealthfront in a report on Tuesday, January 6th. They set an “outperform” rating and a $20.00 target price for the company. The Goldman Sachs Group dropped their price target on Wealthfront from $12.00 to $10.50 and set a “neutral” rating on the stock in a research report on Thursday. Finally, JPMorgan Chase & Co. cut their price target on Wealthfront from $16.00 to $10.00 and set an “overweight” rating on the stock in a research note on Thursday. Four research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $12.67.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Sandia Investment Management LP purchased a new stake in shares of Wealthfront during the fourth quarter valued at approximately $44,000. Barclays PLC bought a new position in Wealthfront in the 4th quarter valued at approximately $136,000. Symmetry Investments LP purchased a new stake in Wealthfront during the 4th quarter valued at $190,000. Realta Investment Advisors bought a new stake in shares of Wealthfront in the 4th quarter worth $194,000. Finally, Hudson Bay Capital Management LP purchased a new position in shares of Wealthfront in the fourth quarter worth $245,000.

Wealthfront Price Performance

The firm has a 50 day simple moving average of $8.61.

About Wealthfront

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.