Wealthfront (NASDAQ:WLTH) Trading Down 7.6% – Time to Sell?

Wealthfront (NASDAQ:WLTH) dropped 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.

Analysts Set New Price Targets

A number of analysts have commented on WLTH shares. Royal Bank Of Canada lowered their price target on Wealthfront from $14.00 to $13.00 and set an “outperform” rating for the company in a research report on Friday, June 5th. Weiss Ratings restated a “sell (d)” rating on shares of Wealthfront in a research note on Monday. Wells Fargo & Company dropped their target price on Wealthfront from $13.00 to $12.00 and set an “overweight” rating on the stock in a research report on Wednesday, July 1st. Wall Street Zen lowered shares of Wealthfront from a “hold” rating to a “sell” rating in a research report on Saturday, June 27th. Finally, Citizens Jmp decreased their price objective on shares of Wealthfront from $20.00 to $17.00 and set a “market outperform” rating for the company in a research note on Monday, March 16th. Four investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $12.58.

Wealthfront Trading Down 7.0%

The firm’s 50 day moving average price is $10.28. The company has a market cap of $1.32 billion and a price-to-earnings ratio of -8.52.

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

Insiders Place Their Bets

In related news, VP Kal Iyer sold 28,498 shares of the stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $8.46, for a total transaction of $241,093.08. Following the sale, the vice president directly owned 225,771 shares of the company’s stock, valued at approximately $1,910,022.66. This represents a 11.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Lauren Lin sold 4,840 shares of the firm’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $8.45, for a total transaction of $40,898.00. Following the sale, the insider owned 158,092 shares in the company, valued at approximately $1,335,877.40. This represents a 2.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 119,558 shares of company stock worth $1,032,888. Corporate insiders own 27.36% of the company’s stock.

Institutional Investors Weigh In On Wealthfront

Several hedge funds have recently modified their holdings of the company. Bank of America Corp DE grew its position in shares of Wealthfront by 1,461.0% during the 1st quarter. Bank of America Corp DE now owns 743,163 shares of the company’s stock valued at $6,874,000 after acquiring an additional 695,555 shares during the period. Stoic Point Capital Management LLC acquired a new position in Wealthfront in the 1st quarter worth about $1,679,000. Royal Bank of Canada purchased a new position in Wealthfront during the first quarter worth approximately $27,000. Southpoint Capital Advisors LP acquired a new stake in Wealthfront in the first quarter valued at approximately $12,950,000. Finally, SummitTX Capital L.P. purchased a new stake in shares of Wealthfront in the first quarter valued at approximately $131,000.

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.