Confluent (NASDAQ:CFLT) Shares Gap Up After Better-Than-Expected Earnings

Confluent, Inc. (NASDAQ:CFLT) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $23.07, but opened at $27.61. Confluent shares last traded at $28.00, with a volume of 3,075,631 shares trading hands.

The company reported ($0.21) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.24) by $0.03. The business had revenue of $250.20 million for the quarter, compared to analysts’ expectations of $243.98 million. Confluent had a negative net margin of 38.35% and a negative return on equity of 34.97%.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on CFLT shares. Needham & Company LLC lifted their target price on shares of Confluent from $28.00 to $31.00 and gave the company a “buy” rating in a research note on Thursday. Bank of America reduced their price objective on Confluent from $32.00 to $26.00 and set an “underperform” rating on the stock in a research note on Thursday, August 1st. DA Davidson restated a “buy” rating and set a $30.00 target price on shares of Confluent in a report on Wednesday, September 18th. JPMorgan Chase & Co. lifted their price target on Confluent from $25.00 to $26.00 and gave the company an “overweight” rating in a report on Friday, October 25th. Finally, Baird R W raised shares of Confluent to a “hold” rating in a report on Wednesday, September 4th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating, twenty-one have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $30.28.

Insider Activity at Confluent

In other news, CMO Stephanie Buscemi sold 3,866 shares of the firm’s stock in a transaction dated Tuesday, August 20th. The stock was sold at an average price of $21.68, for a total transaction of $83,814.88. Following the completion of the transaction, the chief marketing officer now owns 161,673 shares in the company, valued at $3,505,070.64. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. In other news, CEO Edward Jay Kreps sold 232,500 shares of the firm’s stock in a transaction dated Wednesday, August 14th. The shares were sold at an average price of $21.13, for a total value of $4,912,725.00. Following the sale, the chief executive officer now directly owns 452,488 shares in the company, valued at approximately $9,561,071.44. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CMO Stephanie Buscemi sold 3,866 shares of the business’s stock in a transaction on Tuesday, August 20th. The stock was sold at an average price of $21.68, for a total value of $83,814.88. Following the transaction, the chief marketing officer now owns 161,673 shares in the company, valued at approximately $3,505,070.64. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 524,453 shares of company stock worth $10,833,388. Corporate insiders own 13.82% of the company’s stock.

Institutional Trading of Confluent

Institutional investors and hedge funds have recently bought and sold shares of the business. Hollencrest Capital Management purchased a new position in Confluent in the 1st quarter valued at $26,000. V Square Quantitative Management LLC purchased a new position in shares of Confluent during the second quarter worth $68,000. UniSuper Management Pty Ltd grew its position in Confluent by 125.0% in the 1st quarter. UniSuper Management Pty Ltd now owns 2,700 shares of the company’s stock valued at $82,000 after acquiring an additional 1,500 shares in the last quarter. Advisors Asset Management Inc. increased its stake in Confluent by 40.3% during the 1st quarter. Advisors Asset Management Inc. now owns 2,991 shares of the company’s stock worth $91,000 after buying an additional 859 shares during the period. Finally, Lazard Asset Management LLC lifted its holdings in Confluent by 25.5% during the 1st quarter. Lazard Asset Management LLC now owns 5,747 shares of the company’s stock worth $175,000 after buying an additional 1,167 shares in the last quarter. 78.09% of the stock is currently owned by institutional investors and hedge funds.

Confluent Price Performance

The company has a debt-to-equity ratio of 1.25, a quick ratio of 4.44 and a current ratio of 4.44. The company has a market cap of $8.46 billion, a PE ratio of -23.62 and a beta of 0.88. The company’s 50-day simple moving average is $21.04 and its 200 day simple moving average is $24.67.

Confluent Company Profile

Confluent, Inc operates a data streaming platform in the United States and internationally. The company provides platforms that allow customers to connect their applications, systems, and data layers, such as Confluent Cloud, a managed cloud-native software-as-a-service; and Confluent Platform, an enterprise-grade self-managed software.