WisdomTree revenue jumps 57% as Globeflex takes new $2.31M stake
What's the deal? Globeflex Capital LPDealroom has a profile for this one. Try Dealroom → has taken a new stake in WisdomTreeDealroom has a profile for this one. Try Dealroom →, buying 136,640 shares worth about $2.31 million during the second quarter. The move adds to a growing roster of institutions building positions in the asset manager, whose stock trades near a 12-month high.
Why now? WisdomTree posted strong second-quarter results on July 31, reporting revenue of $177.16 million, up 57.3% year on year and ahead of the $170.62 million analysts expected. Earnings of $0.31 per share beat the $0.26 consensus.
What's the endgame? WisdomTree manages exchange-traded funds and related investment products. The latest quarter lifted its return on equity to 39.12% and net margin to 13.27%, while the firm now carries a market capitalisation of $3.56 billion.
Who else is buying? BlackRock opened a new position worth about $326.5 million in the second quarter. Wellington Management lifted its stake 15.7% to 11,196,229 shares, and Arrowstreet CapitalDealroom has a profile for this one. Try Dealroom → grew its holding 41.1%. Institutions and hedge funds now own 78.64% of the stock.
What could go wrong? Analyst views are split. Zacks Research cut the stock to "hold" from "strong-buy," while Oppenheimer, Weiss Ratings, and Wall Street Zen turned more positive. Four analysts rate it a buy against three holds, and the shares trade at a PE ratio of 45.14 near their 12-month high of $23.54.
WisdomTree also declared a quarterly dividend of $0.03 per share, payable August 26, for an annualised yield of 0.5% and a payout ratio of 23.08%.
The signal: Heavy institutional accumulation alongside accelerating revenue points to renewed confidence in WisdomTree, though a stretched valuation and divided analysts leave the next move less certain.
Read more: tickerreport.com
Image credit: Artem Beliaikin
