KBW Downgrades Waddell & Reed to Sell

By Austin Angelo

Waddell & Reed (NYSE: WDR) received a Sell rating and a $18 price target from KBW analyst Robert Lee today. The company’s shares closed yesterday at $19.56.

According to TipRanks.com, Lee is a 3-star analyst with an average return of 1.3% and a 58.0% success rate. Lee covers the Financial sector, focusing on stocks such as Oaktree Capital Group Llc, Calamos Asset Management, and SEI Investments Company.

Currently, the analyst consensus on Waddell & Reed is Moderate Sell and the average price target is $16.75, representing a -14.4% downside.

In a report issued on November 3, Credit Suisse also reiterated a Sell rating on the stock with a $13 price target.

Based on Waddell & Reed’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $306 million and quarterly net profit of $53.83 million. In comparison, last year the company earned revenue of $374 million and had a net profit of $48.06 million.

Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is neutral on the stock. Most recently, in August 2015, James Raines, a Director at WDR sold 3,000 shares for a total of $134,880.

Waddell & Reed Financial, Inc. provides investment advisory, investment management, investment product underwriting, distribution and administrative services. It operates its business through three distinct distribution channels: Advisors channel, Wholesale channel and Institutional channel. The Advisors channel focuses on financial planning, serving primarily middle class and mass affluent clients. The Wholesale channels activities include retail fund distribution through brokers and dealers, registered investment advisors and retirement and insurance platforms. The Institutional channel manages assets in a variety of investment styles for a variety of types of institutions. The company was founded in 1937 and is headquartered in Overland Park, KS.