Wealthfront (NASDAQ:WLTH) Trading Down 7.6% Following Insider Selling

Wealthfront (NASDAQ:WLTH)’s stock price was down 7.6% during mid-day trading on Wednesday after an insider sold shares in the company. The stock traded as low as $8.81 and last traded at $8.75. Approximately 285,371 shares changed hands during mid-day trading, a decline of 82% from the average session volume of 1,601,448 shares. The stock had previously closed at $9.47.

Specifically, Director Jaleh Bisharat sold 8,503 shares of Wealthfront stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $9.50, for a total value of $80,778.50. Following the transaction, the director directly owned 8,503 shares of the company’s stock, valued at $80,778.50. The trade was a 50.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jaleh Bisharat sold 8,504 shares of the stock in a transaction on Monday, July 6th. The stock was sold at an average price of $9.39, for a total transaction of $79,852.56. Following the sale, the director owned 8,503 shares of the company’s stock, valued at approximately $79,843.17. This represents a 50.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Citizens Jmp lowered their price objective on Wealthfront from $20.00 to $17.00 and set a “market outperform” rating on the stock in a report on Monday, March 16th. Weiss Ratings restated a “sell (d)” rating on shares of Wealthfront in a research report on Monday. Keefe, Bruyette & Woods lowered their price target on shares of Wealthfront from $12.00 to $11.00 and set a “market perform” rating on the stock in a research note on Friday, June 5th. Wall Street Zen cut shares of Wealthfront from a “hold” rating to a “sell” rating in a research note on Saturday, June 27th. Finally, Wells Fargo & Company lowered their target price on shares of Wealthfront from $13.00 to $12.00 and set an “overweight” rating on the stock in a research report on Wednesday, July 1st. Four equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Wealthfront currently has an average rating of “Hold” and an average target price of $12.58.

Wealthfront Stock Up 3.6%

The firm has a 50-day moving average of $10.21. The company has a market cap of $1.39 billion and a PE ratio of -9.04.

Wealthfront (NASDAQ:WLTH) last issued its quarterly earnings results on Thursday, June 4th. The company reported $0.07 EPS for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.02). The firm had revenue of $90.48 million for the quarter. The company’s revenue was up 7.1% on a year-over-year basis. On average, equities research analysts anticipate that Wealthfront will post 0.42 earnings per share for the current year.

Institutional Trading of Wealthfront

Institutional investors have recently modified their holdings of the company. Tiger Global Management LLC purchased a new position in Wealthfront in the 4th quarter worth approximately $205,982,000. Dag Ventures LLC acquired a new position in shares of Wealthfront during the fourth quarter worth $187,725,000. Index Venture Associates VI Ltd acquired a new position in shares of Wealthfront during the fourth quarter worth $128,567,000. Wellington Management Group LLP purchased a new position in shares of Wealthfront in the fourth quarter valued at $54,182,000. Finally, North Reef Capital Management LP boosted its stake in shares of Wealthfront by 135.2% in the first quarter. North Reef Capital Management LP now owns 2,885,257 shares of the company’s stock valued at $26,689,000 after purchasing an additional 1,658,624 shares during the period.

Wealthfront Company Profile

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.