Insider Selling: Wealthfront (NASDAQ:WLTH) Director Sells 10,000 Shares

Wealthfront (NASDAQ:WLTH) Director Kenneth 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 transaction of $100,000.00. Following the completion of the transaction, the director owned 49,655 shares in the company, valued at $496,550. The trade was a 16.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wealthfront Stock Performance

Shares of NASDAQ WLTH traded down $0.52 during midday trading on Friday, reaching $10.36. 5,714,590 shares of the stock were exchanged, compared to its average volume of 1,562,376. The stock has a market capitalization of $1.55 billion and a P/E ratio of -11.14. The company has a 50 day simple moving average of $9.36 and a 200 day simple moving average of $9.62. Wealthfront has a twelve month low of $7.20 and a twelve month high of $14.88.

Wealthfront (NASDAQ:WLTH) last released its quarterly earnings data on Wednesday, September 9th. The company reported $0.10 EPS for the quarter, beating analysts’ consensus estimates of $0.09 by $0.01. The firm had revenue of $91.87 million for the quarter. Wealthfront had a negative return on equity of 15.99% and a negative net margin of 19.42%.The company’s revenue was up .9% compared to the same quarter last year. On average, research analysts expect that Wealthfront will post 0.4 earnings per share for the current year.

Key Wealthfront News

Here are the key news stories impacting Wealthfront this week:

• Positive Sentiment: Wealthfront reported fiscal second-quarter adjusted earnings of $0.10 per share, ahead of the $0.09 consensus estimate, while revenue reached $91.87 million and increased approximately 0.9% year over year. The results initially supported a sharp advance in WLTH shares. Wealthfront Shares Advance After Fiscal Q2 Earnings Fall, Revenue Rises
• Positive Sentiment: Platform assets surpassed $100 billion, a scale milestone that may improve investor confidence in Wealthfront’s ability to attract and retain customer assets. The company also plans to transition customers to a Wealthfront Brokerage Account in October, potentially supporting broader product adoption and monetization. Wealthfront Plans October Transition to Wealthfront Brokerage Account
• Neutral Sentiment: Reported short-interest data showed zero shares sold short and a zero-day days-to-cover ratio, but the disclosure also contained an invalid percentage-change figure. The data therefore offers little reliable insight into trading pressure.
• Negative Sentiment: Quarterly profit declined because of higher expenses, and Wealthfront continues to post a negative net margin and negative return on equity. These profitability concerns may limit the benefit of the earnings beat. Wealthfront Q2 Profit Drops From Higher Expenses
• Negative Sentiment: Johnson Fistel announced an investigation into potential securities claims related to post-IPO disclosures and declines in Wealthfront’s stock. Although no wrongdoing has been established, the investigation adds regulatory and litigation risk. Wealthfront Investor Alert
• Negative Sentiment: Director Kenneth Goldman sold 10,000 shares for $100,000, reducing his position by 16.76%. The sale was made under a pre-arranged Rule 10b5-1 plan, which reduces its value as a discretionary bearish signal but may still affect sentiment.

Hedge Funds Weigh In On Wealthfront

Several institutional investors have recently bought and sold shares of WLTH. Royal Bank of Canada acquired a new stake in shares of Wealthfront during the first quarter worth about $27,000. Sandia Investment Management LP acquired a new position in shares of Wealthfront in the fourth quarter valued at approximately $44,000. Strs Ohio purchased a new stake in Wealthfront during the 1st quarter worth approximately $56,000. Barclays PLC acquired a new stake in Wealthfront during the 4th quarter worth approximately $136,000. Finally, Squarepoint Ops LLC acquired a new stake in Wealthfront during the 2nd quarter worth approximately $90,000.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the company. Royal Bank Of Canada cut their price objective on Wealthfront from $13.00 to $11.00 and set an “outperform” rating for the company in a research report on Thursday. JPMorgan Chase & Co. lowered their target price on shares of Wealthfront from $13.00 to $12.00 and set an “overweight” rating for the company in a research note on Friday, June 5th. The Goldman Sachs Group reissued a “neutral” rating and issued a $10.00 price target on shares of Wealthfront in a research note on Thursday. Wells Fargo & Company decreased their price objective 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, Keefe, Bruyette & Woods lowered their price objective on shares of Wealthfront from $11.00 to $10.50 and set a “market perform” rating for the company in a research report on Monday, July 13th. Four equities research 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. According to data from MarketBeat.com, Wealthfront currently has a consensus rating of “Hold” and a consensus target price of $12.00.

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.