Wealthfront (NASDAQ:WLTH) Shares Climb 3.4% – Should You Buy?

Wealthfront (NASDAQ:WLTH)’s stock price traded up 3.4% during trading on Wednesday. The stock traded as high as $10.45 and last traded at $10.4450. 554,643 shares changed hands during mid-day trading, a decline of 69% from the average daily volume of 1,762,886 shares. The stock had previously closed at $10.10.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on WLTH shares. Royal Bank Of Canada lowered their price objective on shares of Wealthfront from $13.00 to $11.00 and set an “outperform” rating on the stock in a research report on Thursday, September 10th. Wall Street Zen upgraded Wealthfront from a “sell” rating to a “hold” rating in a report on Saturday, July 18th. Wells Fargo & Company started coverage on Wealthfront in a research report on Thursday, October 1st. They issued an “overweight” rating and a $11.50 target price for the company. Weiss Ratings reiterated a “sell (d)” rating on shares of Wealthfront in a report on Friday, October 2nd. Finally, The Goldman Sachs Group reiterated a “neutral” rating and set a $11.00 price target on shares of Wealthfront in a report on Wednesday, October 7th. 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 stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $12.29.

Wealthfront Stock Up 3.1%

The stock’s 50-day moving average is $9.84 and its 200 day moving average is $9.96. The stock has a market capitalization of $1.63 billion and a PE ratio of -11.26.

Wealthfront (NASDAQ:WLTH) last released its earnings results on Wednesday, September 9th. The company reported $0.10 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.09 by $0.01. Wealthfront had a negative net margin of 19.42% and a negative return on equity of 14.62%. The company had revenue of $91.87 million during the quarter. The company’s revenue for the quarter was up .9% on a year-over-year basis. As a group, equities research analysts forecast that Wealthfront will post 0.41 EPS for the current year.

Insider Buying and Selling at Wealthfront

In related news, CTO Julien Wetterwald sold 26,231 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $10.73, for a total transaction of $281,458.63. Following the completion of the sale, the chief technology officer directly owned 730,793 shares in the company, valued at approximately $7,841,408.89. This trade represents a 3.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Kenneth A. Goldman sold 10,000 shares of the business’s stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $10.00, for a total value of $100,000.00. Following the completion of the transaction, the director owned 49,655 shares in the company, valued at $496,550. This trade represents a 16.76% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 270,688 shares of company stock worth $2,796,816 over the last 90 days. 27.36% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Wealthfront

Several institutional investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new position in shares of Wealthfront during the 2nd quarter worth $74,766,000. Ieq Capital LLC bought a new position in shares of Wealthfront during the 2nd quarter valued at $24,706,000. North Reef Capital Management LP lifted its stake in shares of 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 purchasing an additional 1,658,624 shares during the last quarter. Southpoint Capital Advisors LP acquired a new stake in shares of Wealthfront in the 1st quarter valued at $12,950,000. Finally, Granahan Investment Management LLC bought a new stake in Wealthfront in the fourth quarter worth $18,837,000.

Wealthfront Company Profile

Wealthfront, Inc is a U.S.-focused financial technology company that provides automated investing, digital financial planning and cash-management services through an online platform. Its services are designed to help individuals manage portfolios, save for financial goals and oversee their finances without relying on traditional branch-based advisory services.

The company’s offerings have included diversified, automated investment portfolios; a cash account for saving and managing everyday funds; financial-planning tools; and lending products such as portfolio lines of credit.