Wealthfront (NASDAQ:WLTH) Shares Down 7.6% on Insider Selling

Shares of Wealthfront (NASDAQ:WLTH) were down 7.6% during mid-day trading on Wednesday following insider selling activity. The company traded as low as $8.81 and last traded at $8.75. 285,371 shares traded hands during mid-day trading, a decline of 82% from the average daily 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 dated Tuesday, July 7th. The stock was sold at an average price of $9.50, for a total value of $80,778.50. Following the completion of the transaction, the director directly owned 8,503 shares of the company’s stock, valued at approximately $80,778.50. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible 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 firm’s stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $9.39, for a total value of $79,852.56. Following the sale, the director directly owned 8,503 shares of the company’s stock, valued at $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.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Citizens Jmp lowered their target price on Wealthfront from $20.00 to $17.00 and set a “market outperform” rating for the company in a report on Monday, March 16th. Keefe, Bruyette & Woods cut their price target on Wealthfront from $12.00 to $11.00 and set a “market perform” rating on the stock in a report on Friday, June 5th. Royal Bank Of Canada reduced their price objective on shares of Wealthfront from $14.00 to $13.00 and set an “outperform” rating for the company in a research report on Friday, June 5th. Wall Street Zen lowered shares of Wealthfront from a “hold” rating to a “sell” rating in a research note on Saturday, June 27th. Finally, Wells Fargo & Company dropped 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 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 stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $12.58.

Wealthfront Price Performance

The company’s fifty day moving average price is $10.21. The firm has a market cap of $1.39 billion and a PE ratio of -9.04.

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

Institutional Trading of Wealthfront

Several institutional investors and hedge funds have recently modified their holdings of the stock. Jennison Associates LLC purchased a new position in shares of Wealthfront during the fourth quarter valued at approximately $4,396,000. Teacher Retirement System of Texas bought a new stake in Wealthfront during the fourth quarter worth $2,310,000. Index Venture Associates VI Ltd purchased a new stake in Wealthfront in the 4th quarter valued at $128,567,000. Dag Ventures LLC purchased a new stake in Wealthfront in the 4th quarter valued at $187,725,000. Finally, Element Capital Management LLC bought a new position in Wealthfront during the 4th quarter valued at $1,278,000.

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.