Wealthfront (NASDAQ:WLTH) Shares Gap Down Following Weak Earnings

Wealthfront (NASDAQ:WLTH)’s share price gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $11.50, but opened at $9.93. Wealthfront shares last traded at $9.8860, with a volume of 380,482 shares trading hands.

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 for the quarter. The firm’s quarterly revenue was up 7.1% compared to the same quarter last year.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the company. The Goldman Sachs Group decreased their price objective on Wealthfront from $12.00 to $10.50 and set a “neutral” rating for the company in a report on Thursday, March 12th. Weiss Ratings assumed coverage on Wealthfront in a report on Wednesday, March 11th. They set a “sell (d)” rating on the stock. Royal Bank Of Canada reissued an “outperform” rating and set a $13.00 price target on shares of Wealthfront in a research report on Friday. Keefe, Bruyette & Woods reaffirmed a “market perform” rating and set a $9.50 price target (down from $13.50) on shares of Wealthfront in a research report on Thursday, March 12th. Finally, Wells Fargo & Company upped their price objective on Wealthfront from $12.00 to $13.00 and gave the stock an “overweight” rating in a research note on Monday, May 4th. Four analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Wealthfront has an average rating of “Hold” and a consensus price target of $12.17.

Hedge Funds Weigh In On Wealthfront

A number of hedge funds and other institutional investors have recently bought and sold shares of WLTH. Royal Bank of Canada acquired a new position in Wealthfront during the first quarter worth approximately $27,000. Sandia Investment Management LP bought a new position in shares of Wealthfront during the 4th quarter worth approximately $44,000. Strs Ohio bought a new position in shares of Wealthfront during the 1st quarter worth approximately $56,000. SummitTX Capital L.P. acquired a new position in shares of Wealthfront during the 1st quarter worth approximately $131,000. Finally, Barclays PLC bought a new stake in Wealthfront in the 4th quarter valued at $136,000.

Wealthfront Stock Down 12.5%

The business’s 50 day simple moving average is $10.85.

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.