Wealthfront (NASDAQ:WLTH) Stock Price Down 6.1% After Earnings Miss

Wealthfront (NASDAQ:WLTH) was down 6.1% on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $8.32 and last traded at $8.37. Approximately 741,219 shares changed hands during trading, a decline of 49% from the average daily volume of 1,458,824 shares. The stock had previously closed at $8.91.

The company reported ($1.31) earnings per share for the quarter, missing analysts’ consensus estimates of ($1.24) by ($0.07). The business had revenue of $96.14 million for the quarter, compared to the consensus estimate of $91.95 million.

More Wealthfront News

Here are the key news stories impacting Wealthfront this week:

• Positive Sentiment: Record revenue, platform assets and repurchase plan: Wealthfront reported record annual revenue of $365.0M and Q4 revenue of $96.1M, and said platform assets hit $94.1B; the company also announced a share repurchase plan — these items support long‑term growth narratives. Wealthfront Reports Fiscal Fourth Quarter and Full Year 2026 Results
• Positive Sentiment: Revenue beat: Q4 revenue topped consensus ($96.14M vs. ~$91.95M), which helps offset concerns from the EPS miss and signals demand for Wealthfront’s services. Blockonomi: Wealthfront Stock Slides 6% Despite Revenue Beat
• Neutral Sentiment: Earnings call nuance — growth vs. fee pressure: Management highlighted steady business growth but acknowledged margin/fee pressure; investors must weigh growth metrics against profitability headwinds. TipRanks: Earnings Call Shows Growth Amid Fee Pressure
• Negative Sentiment: EPS miss and one‑time charges: Q4 GAAP EPS was ($1.31), missing estimates by ~$0.07, and results included a ~$135M IPO‑related charge — these drove headline weakness. MarketBeat: Q4 Results
• Negative Sentiment: Cash management outflows: The company reported ~$360M of cash management outflows in the quarter, raising questions about deposit stability and revenue sustainability from cash products. Blockonomi: Cash Outflow Concerns
• Negative Sentiment: Analyst cuts and target reductions: Multiple firms trimmed targets after Q4 (JPM cut PT $16→$10, Goldman $12→$10.50, Keefe cut target to $9.50, Wells trimmed its PT) — analyst revisions amplify selling pressure. Benzinga: Analyst Price Target Changes
• Negative Sentiment: Securities‑litigation inquiries: Law firms (Faruqi & Faruqi; Bleichmar Fonti & Auld) have launched investigations into WLTH, signaling potential legal risk and further headline volatility. Faruqi Shareholder Alert BFA Law Alert

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the company. KeyCorp started coverage on Wealthfront in a report on Tuesday, January 6th. They issued a “sector weight” rating for the company. Wall Street Zen raised Wealthfront from a “sell” rating to a “hold” rating in a report on Friday, January 23rd. JPMorgan Chase & Co. reduced their target price on Wealthfront from $16.00 to $10.00 and set an “overweight” rating for the company in a research note on Thursday. Wells Fargo & Company decreased their target price on Wealthfront from $12.50 to $12.00 and set an “overweight” rating on the stock in a research report on Thursday. Finally, Weiss Ratings started coverage on shares of Wealthfront in a research note on Wednesday. They issued a “sell (d)” rating on the stock. Four investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $12.67.

Institutional Investors Weigh In On Wealthfront

Several institutional investors have recently bought and sold shares of WLTH. Element Capital Management LLC purchased a new stake in Wealthfront during the 4th quarter worth approximately $1,278,000. Granahan Investment Management LLC purchased a new position in shares of Wealthfront in the fourth quarter valued at approximately $18,837,000. Dragoneer Investment Group LLC acquired a new stake in shares of Wealthfront in the fourth quarter worth approximately $8,892,000. Kennedy Capital Management LLC purchased a new stake in shares of Wealthfront during the fourth quarter worth approximately $5,208,000. Finally, FJ Capital Management LLC acquired a new position in Wealthfront in the 4th quarter valued at $4,270,000.

Wealthfront Stock Down 0.3%

The business’s fifty day simple moving average is $8.61.

About Wealthfront

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.