Wealthfront (NASDAQ:WLTH) Shares Down 5.2% on Analyst Downgrade

Wealthfront (NASDAQ:WLTH) shares fell 5.2% during trading on Friday after Wall Street Zen downgraded the stock from a hold rating to a sell rating. The company traded as low as $9.56 and last traded at $9.62. 350,697 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 2,064,080 shares. The stock had previously closed at $10.15.

Separately, Wells Fargo & Company dropped their price target on Wealthfront from $16.50 to $15.50 and set an “overweight” rating on the stock in a research report on Tuesday, January 13th. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $15.50.

Wealthfront News Roundup

Here are the key news stories impacting Wealthfront this week:

• Positive Sentiment: Wells Fargo kept an “overweight” rating and a $15.50 price target (down from $16.50), implying sizable upside vs. the current market price. That continuing analyst endorsement could support demand once coverage resumes. Wells Fargo Price Target Note
• Neutral Sentiment: Wealthfront reported quarterly results showing $0.21 EPS and $93.22M revenue; investors will watch guidance and asset‑growth metrics for signs of scaling and profitability. Quarterly Results / MarketBeat
• Neutral Sentiment: The IPO quiet period expires Jan. 21, after which the underwriting brokerages are likely to initiate research coverage — a potential catalyst for renewed interest but uncertain in direction. The company issued ~34.6M shares in the Dec. 12 offering. Quiet Period Expiry
• Negative Sentiment: Robbins Geller announced an investigation into whether Wealthfront and certain executives made materially false or misleading statements — increased legal and disclosure risk that can pressure the share price and increase volatility. Robbins Geller Investigation
• Negative Sentiment: Faruqi & Faruqi also launched an investigation tied to the post‑IPO stock decline, signaling mounting class‑action scrutiny that may weigh on sentiment and increase legal costs or distraction for management. Faruqi & Faruqi Investigation

Wealthfront Stock Performance

Wealthfront (NASDAQ:WLTH) last announced its quarterly earnings data on Monday, January 12th. The company reported $0.21 earnings per share for the quarter. The company had revenue of $93.22 million during the quarter.

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.