Wealthfront (NASDAQ:WLTH) Stock Crosses Below 50-Day Moving Average – What’s Next?

Wealthfront (NASDAQ:WLTH) shares crossed below its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of $10.45 and traded as low as $10.17. Wealthfront shares last traded at $10.20, with a volume of 1,334,939 shares trading hands.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on WLTH. Needham & Company LLC reaffirmed a “buy” rating and set a $13.00 price target on shares of Wealthfront in a research note on Wednesday, October 7th. Weiss Ratings reissued a “sell (d)” rating on shares of Wealthfront in a research report on Friday, October 2nd. Wells Fargo & Company raised their target price on Wealthfront from $11.50 to $12.00 and gave the company an “overweight” rating in a research note on Tuesday, November 3rd. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $11.00 target price on shares of Wealthfront in a research report on Wednesday, October 7th. Finally, Wall Street Zen raised Wealthfront from a “sell” rating to a “hold” rating in a research report on Saturday, July 18th. Five equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Wealthfront currently has a consensus rating of “Hold” and an average price target of $12.36.

Wealthfront Stock Down 6.4%

The firm has a market capitalization of $1.59 billion and a price-to-earnings ratio of -10.97. The stock has a 50 day moving average of $10.45 and a 200 day moving average of $9.73.

Wealthfront (NASDAQ:WLTH) last announced its quarterly earnings data on Wednesday, September 9th. The company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.01. Wealthfront had a negative return on equity of 14.62% and a negative net margin of 19.42%. The firm had revenue of $91.87 million for the quarter. The business’s quarterly revenue was up .9% compared to the same quarter last year. Analysts predict that Wealthfront will post 0.37 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Lauren Lin sold 16,117 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $10.73, for a total value of $172,935.41. Following the completion of the sale, the insider directly owned 181,385 shares in the company, valued at approximately $1,946,261.05. The trade was a 8.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Kenneth Goldman sold 10,000 shares of the company’s stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $10.00, for a total value of $100,000.00. Following the sale, the director directly owned 49,655 shares in the company, valued at approximately $496,550. This represents a 16.76% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 270,688 shares of company stock worth $2,796,816. 27.36% of the stock is currently owned by insiders.

Institutional Trading of Wealthfront

A number of institutional investors and hedge funds have recently modified their holdings of WLTH. Sterling Capital Management LLC lifted its position in shares of Wealthfront by 793.2% in the 3rd quarter. Sterling Capital Management LLC now owns 2,751 shares of the company’s stock worth $29,000 after buying an additional 2,443 shares during the last quarter. Royal Bank of Canada acquired a new position in shares of Wealthfront in the 1st quarter valued at about $27,000. Squarepoint Ops LLC bought a new stake in shares of Wealthfront during the 2nd quarter valued at about $90,000. Arizona State Retirement System bought a new stake in shares of Wealthfront during the 2nd quarter valued at about $102,000. Finally, ProShare Advisors LLC acquired a new stake in Wealthfront during the third quarter worth about $122,000.

About Wealthfront

Wealthfront is a U.S.-based digital financial services company that provides automated investing, cash management and financial planning tools. Its platform is designed to help individuals manage savings and investments through online accounts and software. Wealthfront’s offerings include diversified investment portfolios managed with automated strategies, cash accounts offered through partner banks, and tools for setting financial goals and tracking progress. The company has also offered services such as individual stock investing and portfolio lines of credit.