WisdomTree (NYSE: WT) has received positive attention from analysts, prompting an upgrade from a hold rating to a buy rating, according to a research report released by Wall Street Zen on Saturday. This follows a series of favorable assessments from various financial institutions, reflecting increasing confidence in the company’s performance and growth prospects.
Analysts Boost Price Targets
Oppenheimer has raised its target price for WisdomTree from $12.00 to $15.00, assigning an “outperform” rating in a report dated July 22, 2023. Craig Hallum reiterated a “buy” rating on August 4, 2023, while Morgan Stanley increased its price objective from $12.50 to $13.50 in a note released on October 6, 2023. Additionally, Northland Securities set a target price of $16.00 on September 3, 2023, and Weiss Ratings upgraded WisdomTree from a “hold (C+)” to a “buy (B-)” on October 8, 2023.
Currently, four analysts have rated WisdomTree with a buy recommendation, while three have issued hold ratings. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a median target price of $14.08.
Strong Quarterly Earnings Report
WisdomTree reported its quarterly earnings on October 31, 2023, posting earnings per share (EPS) of $0.23, surpassing analysts’ expectations of $0.21 by $0.02. The firm generated revenue of $125.62 million, exceeding estimated revenues of $122.00 million. This marks an 11.0% increase in revenue compared to the same quarter last year, up from an EPS of $0.18 in the previous year. Analysts predict WisdomTree will achieve an EPS of $0.72 for the current fiscal year.
The company has also announced a quarterly dividend of $0.03 per share, scheduled for payment on November 26, 2023. Shareholders of record by November 12, 2023 will be eligible for the dividend, which reflects an annualized payout of $0.12 and a yield of 1.0%. WisdomTree’s current payout ratio stands at 18.46%.
Insider Transactions and Institutional Investments
In other developments, Chief Operating Officer R. Jarrett Lilien sold 12,500 shares of WisdomTree on August 26, 2023, at an average price of $13.21, amounting to a total of $165,125.00. Following this transaction, Lilien holds approximately 1,036,138 shares of the company, valued at about $13.69 million, reflecting a 1.19% decrease in ownership. The transaction details were filed with the U.S. Securities and Exchange Commission (SEC).
Institutional investors have also been active in modifying their stakes in WisdomTree. The Teacher Retirement System of Texas acquired a new position valued at approximately $152,000 in the first quarter. Principal Financial Group Inc. increased its holdings by 2.1%, owning 743,700 shares worth around $6.63 million after adding 15,355 shares. Meanwhile, Envestnet Asset Management Inc. expanded its position by 39.2%, now holding 808,352 shares valued at $7.21 million.
Overall, hedge funds and institutional investors control approximately 78.64% of WisdomTree’s shares, indicating strong institutional confidence in the company’s future.
WisdomTree, an exchange-traded funds (ETFs) sponsor and asset manager, operates in various asset classes, including equities, currency, fixed income, and alternatives. The company also licenses its indices for proprietary products and promotes the integration of its ETFs in retirement plans.
