Alan Imberman Sells 6,292 Shares of Wealthfront (NASDAQ:WLTH) Stock

Wealthfront (NASDAQ:WLTH) CFO Alan Imberman sold 6,292 shares of Wealthfront stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $10.19, for a total transaction of $64,115.48. Following the completion of the sale, the chief financial officer owned 473,510 shares in the company, valued at approximately $4,825,066.90. This represents a 1.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Alan Imberman also recently made the following trade(s):

• On Tuesday, September 15th, Alan Imberman sold 20,304 shares of Wealthfront stock. The shares were sold at an average price of $10.73, for a total transaction of $217,861.92.

Wealthfront Stock Down 0.5%

NASDAQ WLTH traded down $0.05 on Thursday, hitting $10.12. The stock had a trading volume of 3,124,872 shares, compared to its average volume of 1,606,351. The company’s 50-day moving average is $9.46 and its two-hundred day moving average is $9.69. Wealthfront has a one year low of $7.20 and a one year high of $14.88. The stock has a market cap of $1.58 billion and a price-to-earnings ratio of -10.88.

Wealthfront (NASDAQ:WLTH) last released its quarterly earnings results on Wednesday, September 9th. The company reported $0.10 earnings per share for the quarter, beating analysts’ consensus estimates of $0.09 by $0.01. The company had revenue of $91.87 million for the quarter. Wealthfront had a negative return on equity of 14.62% and a negative net margin of 19.42%.The firm’s revenue was up .9% compared to the same quarter last year. On average, sell-side analysts anticipate that Wealthfront will post 0.41 earnings per share for the current year.

Institutional Investors Weigh In On Wealthfront

Institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada acquired a new position in shares of Wealthfront during the 1st quarter valued at $27,000. Strs Ohio bought a new position in Wealthfront during the first quarter valued at about $56,000. Squarepoint Ops LLC acquired a new position in Wealthfront during the second quarter worth about $90,000. Arizona State Retirement System bought a new stake in Wealthfront in the second quarter worth about $102,000. Finally, AXQ Capital LP bought a new stake in Wealthfront in the second quarter worth about $105,000.

Key Headlines Impacting 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.

Analysts Set New Price Targets

A number of brokerages have issued reports on WLTH. Wall Street Zen upgraded Wealthfront from a “sell” rating to a “hold” rating in a research report on Saturday, July 18th. The Goldman Sachs Group restated a “neutral” rating and set a $10.00 price objective on shares of Wealthfront in a research note on Thursday, September 10th. JPMorgan Chase & Co. reduced 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. Keefe, Bruyette & Woods decreased their target price 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. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of Wealthfront in a research note on Monday, July 6th. Four research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $12.00.

About Wealthfront

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.