Wealthfront Corporation Under Investigation for $208 Million Deposit Outflows
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9h ago
0mins
Source: Businesswire
- Deposit Outflow Situation: Wealthfront reported a significant net deposit outflow of $208 million in Q3 2026, a stark reversal from $874 million in inflows during the same period last year, indicating severe challenges in attracting customer deposits.
- CEO's Personal Stake: CEO David Fortunato disclosed that he personally owns 95.1% of Wealthfront's home-lending business and mentioned the possibility of revisiting or revising the ownership structure, which could impact the company's governance and financing strategies.
- Stock Price Reaction: Following the earnings report, Wealthfront's stock price fell by $2.12, or 16.8%, closing at $10.47 per share on January 13, 2026, reflecting market concerns about the company's financial health.
- Legal Investigation Initiated: The Law Offices of Frank R. Cruz announced an investigation into Wealthfront on behalf of investors seeking to recover losses due to potential violations of federal securities laws, highlighting the heightened scrutiny on the company's future prospects.
Analyst Views on WLTH
Wall Street analysts forecast WLTH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WLTH is 16.47 USD with a low forecast of 12.83 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 9.500
Low
12.83
Averages
16.47
High
20.00
Current: 9.500
Low
12.83
Averages
16.47
High
20.00
About WLTH
Wealthfront Corporation is a technology company that built a financial solutions platform for digital natives. Its platform is designed to address the needs of the wealth builders within these generations. Its technology-driven financial solutions help clients turn savings into long-term wealth. Its suite of products, including cash management, investment advisory, borrowing and lending, and financial planning solutions, address the diverse financial needs of its clients regardless of the economic environment. It offers financial products that span a risk spectrum, designed to be delivered through Web and mobile channels. It offers cash management, investment advisory, borrowing and lending, and financial planning. Its proprietary technology includes Omnibus Brokerage Platform, Fully Integrated Brokerage and Cash Management, Financial Data Aggregation, and Data and Analytics Platform. Its omnibus brokerage platform is the foundation for its investing and cash management solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
