Waddell & Reed Receives a Sell from Credit Suisse

By Ryan Adsit

Credit Suisse analyst Craig Siegenthaler reiterated a Sell rating on Waddell & Reed (NYSE: WDR) on November 3 and set a price target of $13. The company’s shares closed last Friday at $15.55, close to its 52-week low of $15.02.

According to TipRanks.com, Siegenthaler is a 1-star analyst with an average return of -1.4% and a 47.7% success rate. Siegenthaler covers the Financial sector, focusing on stocks such as Huntington Bancshares Inc., Virtus Investment Partners, and Oaktree Capital Group Llc.

Waddell & Reed has an analyst consensus of Moderate Sell, with a price target consensus of $16.75.

Based on Waddell & Reed’s latest earnings report from September 30, the company posted quarterly revenue of $311M and quarterly net profit of $53.83M. In comparison, last year the company earned revenue of $359.2M and had a net profit of $48.06M.

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.