WisdomTree (WT) AI Stock Analysis

• Market Cap: $2.16B
• Dividend Yield: 0.82%
• Average Volume (3M): 3.71M
• Price to Earnings (P/E): 37.9
• Beta (1Y): 1.05
• Revenue Growth: 15.43%
• EPS Growth: -19.63%
• Country: US
• Employees: 315
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.18
• Shares Outstanding: 147,107,120
• 10 Day Avg. Volume: 2,525,359
• 30 Day Avg. Volume: 3,714,806
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 4.52
• Enterprise Value/Gross Profit: 6.06
• Enterprise Value/Ebitda: 13.43
• 1Y Price Target: $14.08
• Price Target Upside: -4.02% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 79 Outperform
• Price Target: $15.50 ▲(5.66% Upside)

WisdomTree's overall stock score is driven by strong financial performance and strategic corporate actions, including the acquisition of Ceres Partners. Positive technical indicators and a promising earnings call further support the score. However, high valuation metrics and potential overbought conditions temper the outlook.

Positive Factors

Strategic Acquisition

The acquisition of Ceres Partners allows WisdomTree to enter the private asset markets, particularly the U.S. farmland market, enhancing its market reach and providing long-term growth potential. This strategic move diversifies its portfolio and strengthens its position in innovative investment solutions.

Record AUM

Achieving record assets under management indicates strong investor confidence and effective asset management strategies. This positions WisdomTree for continued revenue growth and market expansion, reinforcing its competitive standing in the asset management industry.

Cash Flow Generation

Strong cash flow generation provides WisdomTree with financial flexibility to invest in growth opportunities, manage debt, and return capital to shareholders. This enhances its ability to sustain operations and pursue strategic initiatives, contributing to long-term stability.

Negative Factors

High Leverage

High leverage can increase financial risk and limit operational flexibility. It necessitates careful debt management to avoid potential liquidity issues, which could impact WisdomTree's ability to invest in growth and maintain financial health over the long term.

Regulatory Challenges

Regulatory challenges in digital assets can hinder growth and innovation. Navigating these complexities requires strategic planning and may delay product launches, impacting WisdomTree's ability to capitalize on emerging market opportunities in the digital asset space.

Foreign Exchange Headwinds

Foreign exchange headwinds can affect profitability and financial forecasts, leading to potential earnings volatility. This necessitates effective currency risk management to mitigate adverse impacts on WisdomTree's financial performance and strategic objectives.

WisdomTree Business Overview & Revenue Model

Company Description

WisdomTree, Inc., through its subsidiaries, operates as an exchange-traded funds (ETFs) sponsor and asset manager. It offers ETFs in equities, currency, fixed income, and alternatives asset classes. The company also licenses its indexes to third parties for proprietary products, as well as offers a platform to promote the use of WisdomTree ETFs in 401(k) plans. It develops index using its fundamentally weighted index methodology. In addition, the company provides investment advisory services. The company was founded in 1985 and is based in New York, New York.

How the Company Makes Money

WisdomTree generates revenue primarily through management fees charged on the assets under management (AUM) in its ETFs and mutual funds. These fees are typically a percentage of the total AUM and can vary depending on the specific fund's investment strategy and structure. In addition to management fees, the company may also earn performance fees for exceeding certain investment benchmarks. Furthermore, WisdomTree engages in strategic partnerships and collaborations with financial institutions and other market participants to enhance distribution and expand its product offerings, which can contribute to increased AUM and, consequently, higher revenues. The company also benefits from the growing trend of passive investing, as more investors seek low-cost investment options, thereby driving demand for its ETF products.

WisdomTree Financial Statement Overview

Summary

WisdomTree exhibits solid financial health with strong revenue growth, efficient operational performance, and robust cash flow generation. The company maintains a stable equity position but faces challenges with high leverage. Continuous monitoring of debt levels and maintaining cash flow growth will be crucial for sustained financial stability.

Income Statement

WisdomTree's income statement shows strong profitability with a gross profit margin of 67.65% and a net profit margin of 16.25% in TTM (Trailing-Twelve-Months). Revenue has grown by 3.93% from 2024 to TTM, indicating healthy growth. The EBIT margin stands at 32.52%, while EBITDA margin is 24.55%, both suggesting efficient operational management. However, the decrease in net income from 2023 to 2024 warrants attention.

Balance Sheet

The balance sheet reflects moderate risk with a debt-to-equity ratio of 1.16 in TTM, indicating considerable leverage. The equity ratio is 41.72%, suggesting a strong equity base relative to total assets. ROE is 16.23%, showing effective utilization of shareholder equity to generate profits. While the company is stable, the high leverage could be a concern if not managed properly.

Cash Flow

WisdomTree's cash flow statement demonstrates robust cash generation with a free cash flow growth rate of 11.32% from 2024 to TTM. The operating cash flow to net income ratio is 1.76, indicating strong cash flow relative to earnings. Free cash flow to net income ratio is 1.75, highlighting efficient cash management. Despite strong cash flow metrics, potential fluctuations in free cash flow growth need monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	444.57M	427.74M	349.04M	301.35M	304.32M	249.91M
Gross Profit	331.36M	306.46M	266.15M	227.70M	235.54M	183.76M
EBITDA	149.65M	117.37M	151.60M	89.08M	93.76M	2.88M
Net Income	72.23M	66.69M	102.55M	50.68M	49.80M	-35.66M
Balance Sheet
Total Assets	1.07B	1.03B	944.14M	1.03B	1.04B	896.69M
Cash, Cash Equivalents and Short-Term Investments	193.67M	266.63M	188.03M	258.34M	267.88M	108.32M
Total Debt	515.38M	512.91M	275.47M	322.68M	319.16M	187.22M
Total Liabilities	621.79M	633.56M	402.43M	595.64M	636.42M	603.41M
Stockholders Equity	445.09M	399.98M	541.71M	438.18M	401.99M	398.83M
Cash Flow
Free Cash Flow	126.16M	113.32M	83.34M	54.87M	75.03M	46.66M
Operating Cash Flow	127.47M	113.46M	85.60M	55.09M	75.32M	47.14M
Investing Cash Flow	-30.89M	-23.88M	82.05M	-37.66M	-99.63M	10.64M
Financing Cash Flow	-41.81M	-36.00M	-171.64M	-22.78M	92.55M	-60.18M

WisdomTree Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WT, the sentiment is Positive. The current price of 14.67 is above the 20-day moving average (MA) of 13.82, above the 50-day MA of 13.42, and above the 200-day MA of 10.61, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 68.50 is Neutral, neither overbought nor oversold. The STOCH value of 95.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WT.

WisdomTree Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WT	79 Outperform	$2.16B	37.90	11.22%	0.82%	15.43%	-19.63%
GSBD	71 Outperform	1.26B	9.05	0.00%	15.75%	-55.16%	47.09%
AMTD	71 Outperform	1.12B	1.88	3.21%	―	0.00%	0.00%
VRTS	67 Neutral	1.29B	9.28	16.21%	4.70%	0.66%	36.96%
NMFC	65 Neutral	1.04B	13.10	0.00%	13.14%	39.05%	-32.62%
PX	63 Neutral	1.30B	95.68	4.32%	1.22%	15.60%	445.23%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

WisdomTree Corporate Events

WisdomTree Issues $475M Convertible Senior Notes

On August 14, 2025, WisdomTree, Inc. issued $475 million in 4.625% Convertible Senior Notes due 2030 through a private offering to qualified institutional buyers, resulting in approximately $464 million in net proceeds. These notes, which are senior unsecured obligations, offer flexibility in conversion and redemption options, potentially impacting the company’s financial strategy and market positioning by providing additional capital for growth and operations.

WisdomTree Announces $475M Convertible Notes Offering

On August 12, 2025, WisdomTree announced the pricing of an upsized offering of $415 million in convertible senior notes due 2030, with an additional $60 million purchased by initial buyers, totaling $475 million. The proceeds will fund the acquisition of Ceres Partners, repurchase $24 million of 2028 notes, and buy back $90 million in common stock, impacting market positioning and potentially affecting stock prices.

WisdomTree Announces $400M Convertible Notes Offering

On August 11, 2025, WisdomTree announced a private offering of $400 million in convertible senior notes due 2030, aimed at qualified institutional buyers. The proceeds will primarily fund the acquisition of Ceres Partners, LLC, repurchase outstanding notes, and buy back shares of its common stock. The announcement highlights WisdomTree’s strategic financial maneuvers to strengthen its market position and manage its capital structure effectively.

WisdomTree Acquires Ceres Partners to Expand Market Reach

On July 31, 2025, WisdomTree, Inc. announced its acquisition of Ceres Partners, LLC, a leading U.S.-based alternative asset manager specializing in farmland investments. This strategic acquisition marks WisdomTree’s entry into the private asset markets, particularly focusing on the $3.5 trillion U.S. farmland market and related sectors such as solar and AI data infrastructure. The transaction, expected to close in the fourth quarter of 2025, aims to provide WisdomTree with immediate scale and long-term growth potential, enhancing its position as a leader in innovative investment solutions. The acquisition is anticipated to drive significant growth opportunities for WisdomTree, offering differentiated access to income-generating, inflation-hedged private investments, and positioning the company to capitalize on structural growth opportunities in wealth and asset management.

WisdomTree Stockholders Approve Key Proposals at Annual Meeting

On June 17, 2025, WisdomTree, Inc. held its Annual Meeting of Stockholders where three proposals were voted on, including the election of nine board members, the ratification of Ernst & Young LLP as the independent accounting firm, and an advisory resolution on executive compensation. The stockholders approved all proposals, with a significant majority voting in favor, indicating strong support for the company’s current leadership and strategic direction.