Wealthfront (NASDAQ:WLTH) Stock Price Down 5.6% – Should You Sell?

Wealthfront (NASDAQ:WLTH)’s stock price was down 5.6% on Wednesday . The stock traded as low as $10.34 and last traded at $10.2590. 299,432 shares were traded during trading, a decline of 81% from the average session volume of 1,579,355 shares. The stock had previously closed at $10.87.

Analysts Set New Price Targets

Several brokerages have recently issued reports on WLTH. JPMorgan Chase & Co. lowered their price objective on shares of Wealthfront from $13.00 to $12.00 and set an “overweight” rating for the company in a research report on Friday, June 5th. Keefe, Bruyette & Woods decreased their price objective on Wealthfront from $11.00 to $10.50 and set a “market perform” rating for the company in a report on Monday, July 13th. Wall Street Zen raised Wealthfront from a “sell” rating to a “hold” rating in a research report on Saturday, July 18th. Wells Fargo & Company cut their target price on Wealthfront from $12.00 to $11.50 and set an “overweight” rating on the stock in a research note on Tuesday, August 4th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Wealthfront in a research report on Monday, July 6th. 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 stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $12.00.

Wealthfront Trading Down 6.9%

The stock’s 50 day moving average price is $9.44 and its 200 day moving average price is $9.68. The company has a market capitalization of $1.51 billion and a price-to-earnings ratio of -10.86.

Wealthfront (NASDAQ:WLTH) last released its earnings results on Wednesday, September 9th. The company reported $0.10 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.09 by $0.01. Wealthfront had a negative return on equity of 15.99% and a negative net margin of 19.42%.The business had revenue of $91.87 million for the quarter. The firm’s quarterly revenue was up .9% compared to the same quarter last year. On average, research analysts expect that Wealthfront will post 0.41 earnings per share for the current year.

Insider Activity at Wealthfront

In other news, Director Kenneth Goldman sold 10,000 shares of the company’s stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $10.00, for a total transaction of $100,000.00. Following the sale, the director owned 49,655 shares in the company, valued at $496,550. This represents a 16.76% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jaleh Bisharat sold 8,504 shares of the stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $9.39, for a total value of $79,852.56. Following the completion of the sale, the director directly owned 8,503 shares of the company’s stock, valued at approximately $79,843.17. The trade was a 50.00% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 27,007 shares of company stock worth $260,631 in the last ninety days. Insiders own 27.36% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of WLTH. BlackRock Inc. acquired a new position in shares of Wealthfront during the 2nd quarter worth about $74,766,000. Renaissance Technologies LLC bought a new position in Wealthfront during the first quarter worth about $1,622,000. Bank of America Corp DE grew its holdings in Wealthfront by 1,461.0% during the first quarter. Bank of America Corp DE now owns 743,163 shares of the company’s stock worth $6,874,000 after purchasing an additional 695,555 shares during the period. Southpoint Capital Advisors LP acquired a new position in Wealthfront during the first quarter worth approximately $12,950,000. Finally, PEAK6 LLC bought a new stake in Wealthfront in the second quarter valued at approximately $2,012,000.

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.