Insider Selling: Wealthfront (NASDAQ:WLTH) Insider Sells $50,899.05 in Stock

Wealthfront (NASDAQ:WLTH) insider Lauren Lin sold 4,995 shares of the business’s stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $10.19, for a total value of $50,899.05. Following the sale, the insider owned 176,390 shares in the company, valued at approximately $1,797,414.10. The trade was a 2.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Lauren Lin also recently made the following trade(s):

• On Tuesday, September 15th, Lauren Lin sold 16,117 shares of Wealthfront stock. The shares were sold at an average price of $10.73, for a total transaction of $172,935.41.

Wealthfront Price Performance

NASDAQ:WLTH traded down $0.05 during mid-day trading on Thursday, hitting $10.12. The company’s stock had a trading volume of 3,124,872 shares, compared to its average volume of 1,606,351. The business’s fifty day moving average is $9.46 and its two-hundred day moving average is $9.69. The stock has a market cap of $1.58 billion and a price-to-earnings ratio of -10.88. Wealthfront has a 1 year low of $7.20 and a 1 year high of $14.88.

Wealthfront (NASDAQ:WLTH) last issued 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 business had revenue of $91.87 million during the quarter. Wealthfront’s revenue was up .9% on a year-over-year basis. Analysts anticipate that Wealthfront will post 0.41 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in WLTH. Royal Bank of Canada acquired a new stake in Wealthfront in the 1st quarter valued at $27,000. Strs Ohio purchased a new position in Wealthfront during the first quarter valued at $56,000. Squarepoint Ops LLC acquired a new stake in shares of Wealthfront in the second quarter valued at about $90,000. Arizona State Retirement System acquired a new stake in shares of Wealthfront in the second quarter valued at about $102,000. Finally, AXQ Capital LP purchased a new stake in shares of Wealthfront during the second quarter worth about $105,000.

Trending Headlines about Wealthfront

Here are the key news stories impacting Wealthfront this week:

• Positive Sentiment: Wealthfront’s platform assets surpassed $100 billion by the end of August, while second-quarter funded clients increased 14% year over year to 1.51 million. Platform assets rose 12% to $99 billion, supporting the long-term growth story. Wealthfront Tops $100 Billion in Platform Assets
• Positive Sentiment: Second-quarter earnings exceeded expectations, with earnings per share of $0.10 versus the $0.09 consensus estimate. Revenue reached $91.9 million, and analysts expect approximately $0.41 in full-year EPS.
• Neutral Sentiment: The company’s growth is not yet translating proportionally into revenue: quarterly revenue increased only about 1% year over year despite the 12% increase in platform assets. Wealthfront also remains unprofitable, with a negative net margin of 19.42% and negative return on equity of 14.62%. Wealthfront Earnings Call: Growth Strong, Margins Tested
• Negative Sentiment: Several executives and insiders reported sales totaling roughly $1.34 million, including transactions by the CFO, CTO, two vice presidents, a director and another insider. Most sales were explicitly made to cover tax-withholding obligations related to vested equity awards, which reduces their signaling value; the director’s sale was conducted under a pre-arranged Rule 10b5-1 plan. Nevertheless, the volume of insider selling can weigh on investor confidence and add near-term supply.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on WLTH shares. Royal Bank Of Canada lowered their price objective on Wealthfront from $13.00 to $11.00 and set an “outperform” rating on the stock in a research report on Thursday, September 10th. The Goldman Sachs Group reaffirmed a “neutral” rating and set 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. Wells Fargo & Company lowered their price target on shares of Wealthfront from $12.00 to $11.50 and set an “overweight” rating on the stock in a report on Tuesday, August 4th. Finally, JPMorgan Chase & Co. cut their price objective on shares of Wealthfront from $13.00 to $12.00 and set an “overweight” rating for the company in a report on Friday, June 5th. Four equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Wealthfront currently has an average rating of “Hold” and a consensus target price of $12.00.

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.