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

Wealthfront (NASDAQ:WLTH) CFO Alan Imberman sold 6,292 shares of the firm’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 $64,115.48. Following the transaction, the chief financial officer owned 473,510 shares of the company’s stock, valued at $4,825,066.90. This trade represents a 1.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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 stock was sold at an average price of $10.73, for a total transaction of $217,861.92.

Wealthfront Stock Performance

NASDAQ WLTH opened at $10.10 on Friday. The firm has a market cap of $1.58 billion and a price-to-earnings ratio of -10.86. The firm has a 50 day simple moving average of $9.48 and a 200-day simple moving average of $9.70. Wealthfront has a one year low of $7.20 and a one year high of $14.88.

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 for the quarter. The company’s revenue was up .9% on a year-over-year basis. Equities analysts predict that Wealthfront will post 0.41 EPS for the current fiscal year.

Analysts Set New Price Targets

Several equities research analysts have weighed in on WLTH shares. Royal Bank Of Canada cut their price target on Wealthfront from $13.00 to $11.00 and set an “outperform” rating on the stock in a report on Thursday, September 10th. Keefe, Bruyette & Woods reduced their target price on shares of Wealthfront from $11.00 to $10.50 and set a “market perform” rating on the stock in a report on Monday, July 13th. JPMorgan Chase & Co. dropped their price objective on shares of Wealthfront from $13.00 to $12.00 and set an “overweight” rating on the stock in a research report on Friday, June 5th. The Goldman Sachs Group reiterated a “neutral” rating and set a $10.00 target price on shares of Wealthfront in a research note on Thursday, September 10th. Finally, Wells Fargo & Company cut their price target on Wealthfront from $12.00 to $11.50 and set an “overweight” rating on the stock in a research note on Tuesday, August 4th. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $12.00.

Key Headlines Impacting Wealthfront

Here are the key news stories impacting Wealthfront this week:

• Positive Sentiment: Platform assets rose 12% year over year to $99 billion in the fiscal second quarter and surpassed $100 billion by the end of August. Funded clients increased 14% to 1.51 million, reinforcing Wealthfront’s long-term growth potential. Wealthfront Tops $100 Billion in Platform Assets
• Positive Sentiment: Wealthfront reported quarterly earnings of $0.10 per share, exceeding the $0.09 analyst consensus, with revenue of $91.87 million. Analysts currently expect approximately $0.41 in earnings per share for the full year.
• Neutral Sentiment: The company’s asset and client growth has not yet translated into comparable financial growth: revenue increased only about 1% year over year, while Wealthfront continued to post a negative net margin and negative return on equity. This raises questions about the pace of margin improvement.
• Neutral Sentiment: Analyst sentiment remains mixed. Goldman Sachs maintained a neutral rating with a $10 target, while RBC and JPMorgan reduced their price targets to $11 and $12, respectively, but retained outperform or overweight ratings. The broader consensus is “Hold,” with a $12 target price.
• Negative Sentiment: Executives and other insiders disclosed roughly $1.34 million in combined stock sales, including transactions by the CFO, CTO, two vice presidents, another insider and a director. The sales could weigh on sentiment, although most were explicitly made for tax withholding and one occurred under a pre-arranged Rule 10b5-1 plan. Wealthfront Insider Sales

Institutional Trading of Wealthfront

Institutional investors have recently modified their holdings of the stock. Whetstone Capital Advisors LLC boosted its holdings in shares of Wealthfront by 10.6% in the 2nd quarter. Whetstone Capital Advisors LLC now owns 604,160 shares of the company’s stock valued at $5,401,000 after buying an additional 57,753 shares in the last quarter. Squarepoint Ops LLC acquired a new position in Wealthfront in the second quarter valued at $90,000. Arizona State Retirement System purchased a new position in shares of Wealthfront during the second quarter worth about $102,000. AXQ Capital LP acquired a new stake in shares of Wealthfront during the second quarter worth about $105,000. Finally, ICONIQ Capital LLC purchased a new stake in shares of Wealthfront in the 2nd quarter valued at about $111,000.

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.