Wealthfront (NASDAQ:WLTH) Shares Down 7.6% – Should You Sell?

Wealthfront (NASDAQ:WLTH)’s share price traded down 7.6% during mid-day trading on Wednesday . The stock traded as low as $8.81 and last traded at $8.75. Approximately 285,371 shares traded hands during mid-day trading, a decline of 82% from the average daily volume of 1,601,448 shares. The stock had previously closed at $9.47.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. Wells Fargo & Company cut their price target on shares of Wealthfront from $13.00 to $12.00 and set an “overweight” rating on the stock in a report on Wednesday, July 1st. Citizens Jmp cut their target price on Wealthfront from $20.00 to $17.00 and set a “market outperform” rating on the stock in a research note on Monday, March 16th. JPMorgan Chase & Co. reduced their target price on Wealthfront from $13.00 to $12.00 and set an “overweight” rating on the stock in a research note on Friday, June 5th. Wall Street Zen downgraded Wealthfront from a “hold” rating to a “sell” rating in a research report on Saturday, June 27th. Finally, Keefe, Bruyette & Woods lowered their target price on shares of Wealthfront from $12.00 to $11.00 and set a “market perform” rating for the company in a research note 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 company. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $12.58.

Wealthfront Trading Down 7.0%

The stock has a market cap of $1.32 billion and a PE ratio of -8.52. The firm’s fifty day moving average is $10.28.

Wealthfront (NASDAQ:WLTH) last issued its earnings results on Thursday, June 4th. The company reported $0.07 earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.02). The business had revenue of $90.48 million during the quarter. The company’s quarterly revenue was up 7.1% compared to the same quarter last year. As a group, equities analysts forecast that Wealthfront will post 0.42 EPS for the current fiscal year.

Insiders Place Their Bets

In other Wealthfront news, CTO Julien Wetterwald sold 39,810 shares of the firm’s stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $8.46, for a total transaction of $336,792.60. Following the transaction, the chief technology officer owned 727,052 shares of the company’s stock, valued at approximately $6,150,859.92. This trade represents a 5.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Kal Iyer sold 45,772 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $8.92, for a total value of $408,286.24. Following the sale, the vice president owned 254,269 shares of the company’s stock, valued at approximately $2,268,079.48. This represents a 15.26% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 119,558 shares of company stock worth $1,032,888 in the last three months. Corporate insiders own 27.36% of the company’s stock.

Institutional Trading of Wealthfront

Several hedge funds have recently modified their holdings of WLTH. Jennison Associates LLC acquired a new stake in shares of Wealthfront in the 4th quarter worth $4,396,000. Teacher Retirement System of Texas purchased a new stake in Wealthfront in the fourth quarter valued at about $2,310,000. Index Venture Associates VI Ltd acquired a new stake in Wealthfront in the fourth quarter worth about $128,567,000. Dag Ventures LLC purchased a new stake in shares of Wealthfront during the fourth quarter worth about $187,725,000. Finally, Element Capital Management LLC purchased a new stake in shares of Wealthfront during the fourth quarter worth about $1,278,000.

Wealthfront Company Profile

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.