Insider Selling: Wealthfront (NASDAQ:WLTH) CTO Sells 26,138 Shares

Wealthfront (NASDAQ:WLTH) CTO Julien Wetterwald sold 26,138 shares of Wealthfront stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $10.10, for a total transaction of $263,993.80. Following the transaction, the chief technology officer owned 696,525 shares in the company, valued at $7,034,902.50. This represents a 3.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Julien Wetterwald also recently made the following trade(s):

• On Wednesday, September 16th, Julien Wetterwald sold 8,130 shares of Wealthfront stock. The stock was sold at an average price of $10.19, for a total value of $82,844.70.
• On Tuesday, September 15th, Julien Wetterwald sold 26,231 shares of Wealthfront stock. The stock was sold at an average price of $10.73, for a total value of $281,458.63.

Wealthfront Price Performance

NASDAQ WLTH remained flat at $10.10 on Friday. The company had a trading volume of 16,620,451 shares, compared to its average volume of 1,690,857. The firm has a market cap of $1.58 billion and a P/E ratio of -10.86. The business has a 50-day simple moving average of $9.48 and a 200 day simple moving average of $9.70. Wealthfront has a 12 month low of $7.20 and a 12 month high of $14.88.

Wealthfront (NASDAQ:WLTH) last released its quarterly earnings results 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 business had revenue of $91.87 million during the quarter. Wealthfront’s revenue was up .9% compared to the same quarter last year. As a group, analysts anticipate that Wealthfront will post 0.41 EPS for the current year.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on WLTH shares. Keefe, Bruyette & Woods lowered their price target on shares of Wealthfront from $11.00 to $10.50 and set a “market perform” rating on the stock in a report on Monday, July 13th. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $10.00 target price on shares of Wealthfront in a report on Thursday, September 10th. Weiss Ratings reiterated a “sell (d)” rating on shares of Wealthfront in a research note on Monday, July 6th. Wall Street Zen raised Wealthfront from a “sell” rating to a “hold” rating in a report on Saturday, July 18th. Finally, Wells Fargo & Company lowered their price objective on Wealthfront from $12.00 to $11.50 and set an “overweight” rating on the stock in a research report on Tuesday, August 4th. Four analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $12.00.

Institutional Investors Weigh In On Wealthfront

Institutional investors and hedge funds have recently modified their holdings of the stock. Index Venture Associates VI Ltd purchased a new position in shares of Wealthfront in the fourth quarter worth $128,567,000. BlackRock Inc. purchased a new position in Wealthfront during the second quarter valued at $74,766,000. North Reef Capital Management LP increased its holdings in Wealthfront by 135.2% in the 1st quarter. North Reef Capital Management LP now owns 2,885,257 shares of the company’s stock valued at $26,689,000 after acquiring an additional 1,658,624 shares during the last quarter. Ieq Capital LLC bought a new stake in Wealthfront in the 2nd quarter valued at $24,706,000. Finally, Granahan Investment Management LLC purchased a new stake in Wealthfront in the 4th quarter worth $18,837,000.

Wealthfront News Roundup

Here are the key news stories impacting Wealthfront this week:

• Positive Sentiment: Platform assets increased 12% year over year to $99 billion in the fiscal second quarter and exceeded $100 billion by the end of August. Funded clients rose 14% to 1.51 million, supporting the long-term growth outlook. Wealthfront platform assets article
• Positive Sentiment: Wealthfront reported quarterly EPS of $0.10, beating the $0.09 consensus estimate, while revenue reached $91.87 million. Analysts expect approximately $0.41 in full-year EPS.
• Positive Sentiment: Institutional interest provides an additional supportive signal. Index Venture Associates and BlackRock established sizable positions, while North Reef Capital increased its stake by 135.2%.
• Neutral Sentiment: Growth in assets and clients has not yet translated into comparable financial expansion: quarterly revenue increased only about 1% year over year. Wealthfront also reported a negative net margin of 19.42% and negative return on equity of 14.62%, keeping profitability a key investor concern.
• Neutral Sentiment: Analyst opinion remains mixed. Goldman Sachs maintained a neutral rating with a $10 price target, while RBC, Wells Fargo and other firms lowered targets but generally retained positive ratings. The overall consensus is “Hold,” with an average target near $12.
• Negative Sentiment: Insiders disclosed approximately $1.34 million of combined stock sales, including transactions by the CFO, CTO, vice presidents, Lauren Lin and a director. The selling may weigh on sentiment, although the reported transactions were primarily made to cover tax withholding on vested equity awards, and one director’s sale occurred under a pre-arranged Rule 10b5-1 plan. Wealthfront insider sales article

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.