NEW YORK - WisdomTree, Inc. (NYSE: WT), an investment management firm, has publicly disclosed a letter from its Board of Directors, rejecting proposals from ETFS Capital Limited's chairman, Graham Tuckwell. The board's response, dated February 27, 2024, addresses Tuckwell's suggestions, including the replacement of CEO Jonathan Steinberg, raising outside capital for WisdomTree Prime, and initiating a strategic review of the company.
The Board unanimously decided against Tuckwell's proposals, asserting that they would not align with the company's long-term growth strategy and value-creation initiatives. They emphasized that CEO Steinberg has the full support of the Board, clients, employees, and partners, and highlighted his strong backing from stockholders at the 2023 Annual Meeting.
WisdomTree also defended its approach to financing its digital assets business, stating that external funding is unnecessary and that their digital assets strategy is integral to the company's future success. The Board does not see the need for a strategic review or the appointment of an investment bank, given the company's current trajectory and progress on various initiatives.
In the past, WisdomTree has engaged with Tuckwell, incorporating some of his suggestions, such as adding new Board members and declassifying the Board. However, the special committee formed to review the company's business found no reason to alter the current strategy. The Board has also successfully defended against Tuckwell's proxy contest at the annual stockholders' meeting, where his candidacy was rejected, and a stockholder rights plan was approved.
WisdomTree's letter refutes Tuckwell's claims of poor performance and value destruction since the acquisition of ETF Securities in 2018, stating that the acquisition has been beneficial, enhancing earnings and stockholder value. The company asserts that it has outperformed peers in terms of stockholder return and growth, and has invested in innovation and technology, including blockchain-enabled finance.
The Board urges Tuckwell to respect the decisions of WisdomTree's stockholders and the judgment of its Board. They remain open to constructive dialogue with stockholders to further the goal of creating stockholder value.
This news is based on a press release statement from WisdomTree, Inc.
InvestingPro Insights
As WisdomTree, Inc. (NYSE: WT) continues to navigate the strategic suggestions from ETFS Capital Limited's chairman, Graham Tuckwell, and maintains its confidence in the current management and strategy, it's important for investors to consider the latest financial metrics and analyst insights. According to real-time data from InvestingPro, WisdomTree exhibits a strong financial profile with a market capitalization of $1.16 billion USD. The company's revenue growth has been notable, with a 15.83% increase in the last twelve months as of Q4 2023, and an even more impressive quarterly revenue growth of 23.92% in Q4 2023.
InvestingPro Tips suggest that WisdomTree is trading at a low P/E ratio relative to near-term earnings growth, with an adjusted P/E ratio of 10.25 as of the last twelve months ending Q4 2023. This could indicate that the stock is undervalued considering its earnings potential. Additionally, the stock has seen a significant return over the last week, with a 7.9% price total return, which complements the strong return over the last three months of 22.35%. These metrics may appeal to investors looking for companies with robust recent performance.
Moreover, WisdomTree has maintained dividend payments for 11 consecutive years, with a dividend yield of 1.52% as of the latest data, which could be attractive for income-focused investors. It's also worth noting that analysts have revised their earnings upwards for the upcoming period, reflecting optimism about the company's future profitability. For investors seeking more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/WT. To access these tips and comprehensive financial data, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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