Wealthfront (NASDAQ:WLTH) Shares Up 3.4% – Time to Buy?

Shares of Wealthfront (NASDAQ:WLTH) shot up 3.4% during trading on Wednesday. The stock traded as high as $10.45 and last traded at $10.4450. Approximately 554,643 shares changed hands during mid-day trading, a decline of 69% from the average daily volume of 1,762,886 shares. The stock had previously closed at $10.10.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on WLTH shares. Royal Bank Of Canada cut their price target on shares of Wealthfront from $13.00 to $11.00 and set an “outperform” rating for the company in a report on Thursday, September 10th. Weiss Ratings reiterated a “sell (d)” rating on shares of Wealthfront in a research report on Friday, October 2nd. Needham & Company LLC reissued a “buy” rating and issued a $13.00 price objective on shares of Wealthfront in a research note on Wednesday, October 7th. Keefe, Bruyette & Woods decreased their price objective on shares of Wealthfront from $11.00 to $10.50 and set a “market perform” rating on the stock in a research note on Monday, July 13th. Finally, Wells Fargo & Company began coverage on shares of Wealthfront in a research report on Thursday, October 1st. They set an “overweight” rating and a $11.50 price objective for the company. Five 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 data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $12.29.

Wealthfront Stock Up 7.0%

The firm has a 50 day moving average of $9.88 and a two-hundred day moving average of $9.98. The firm has a market capitalization of $1.75 billion and a price-to-earnings ratio of -12.02.

Wealthfront (NASDAQ:WLTH) last issued its earnings results on Wednesday, September 9th. The company reported $0.10 EPS for the quarter, topping the consensus estimate of $0.09 by $0.01. The firm had revenue of $91.87 million during the quarter. Wealthfront had a negative return on equity of 14.62% and a negative net margin of 19.42%. Wealthfront’s revenue for the quarter was up .9% compared to the same quarter last year. Sell-side analysts forecast that Wealthfront will post 0.41 EPS for the current fiscal year.

Insider Activity at Wealthfront

In other Wealthfront news, insider Lauren Lin sold 4,574 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $10.10, for a total value of $46,197.40. Following the sale, the insider owned 171,816 shares in the company, valued at $1,735,341.60. This trade represents a 2.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Kal Iyer sold 26,738 shares of the business’s stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $10.11, for a total transaction of $270,321.18. Following the sale, the vice president directly owned 232,494 shares in the company, valued at approximately $2,350,514.34. The trade was a 10.31% 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. In the last quarter, insiders have sold 270,688 shares of company stock valued at $2,796,816. 27.36% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. BlackRock Inc. bought a new stake in Wealthfront during the 2nd quarter worth $74,766,000. Renaissance Technologies LLC acquired a new position in Wealthfront in the 1st quarter worth about $1,622,000. Bank of America Corp DE increased its holdings in Wealthfront by 1,461.0% in the 1st 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 in the last quarter. PEAK6 LLC acquired a new position in Wealthfront in the 2nd quarter worth about $2,012,000. Finally, Southpoint Capital Advisors LP bought a new position in Wealthfront in the first quarter valued at about $12,950,000.

About Wealthfront

Wealthfront, Inc is a U.S.-focused financial technology company that provides automated investing, digital financial planning and cash-management services through an online platform. Its services are designed to help individuals manage portfolios, save for financial goals and oversee their finances without relying on traditional branch-based advisory services.

The company’s offerings have included diversified, automated investment portfolios; a cash account for saving and managing everyday funds; financial-planning tools; and lending products such as portfolio lines of credit.