Confluent (NASDAQ:CFLT) Posts Earnings Results, Beats Expectations By $0.02 EPS

Confluent (NASDAQ:CFLT) issued its earnings results on Wednesday. The company reported $0.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.02, FiscalAI reports. Confluent had a negative net margin of 27.32% and a negative return on equity of 25.40%. The firm had revenue of $314.82 million during the quarter, compared to analysts’ expectations of $308.03 million.

Confluent Price Performance

Confluent stock traded down $0.08 during midday trading on Wednesday, reaching $30.51. The company had a trading volume of 10,332,530 shares, compared to its average volume of 16,770,271. The company has a debt-to-equity ratio of 0.98, a current ratio of 4.01 and a quick ratio of 4.01. Confluent has a 12-month low of $15.64 and a 12-month high of $37.90. The company has a market capitalization of $10.67 billion, a P/E ratio of -33.90 and a beta of 0.95. The firm’s fifty day simple moving average is $29.87 and its 200-day simple moving average is $23.98.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Evercore set a $31.00 price target on Confluent in a research report on Monday, December 8th. William Blair lowered shares of Confluent from an “outperform” rating to a “market perform” rating in a report on Monday, December 8th. Citigroup increased their price target on shares of Confluent from $26.00 to $31.00 and gave the stock a “neutral” rating in a report on Tuesday, December 9th. Mizuho cut shares of Confluent from a “strong-buy” rating to a “hold” rating in a report on Monday, December 8th. Finally, The Goldman Sachs Group upped their price objective on shares of Confluent from $21.00 to $24.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 28th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, twenty-eight have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Confluent has a consensus rating of “Hold” and an average target price of $28.78.

Insider Activity at Confluent

In other Confluent news, CRO Ban Ryan Norris Mac sold 3,053 shares of the stock in a transaction that occurred on Tuesday, December 23rd. The stock was sold at an average price of $29.96, for a total transaction of $91,467.88. Following the completion of the transaction, the executive owned 332,679 shares of the company’s stock, valued at $9,967,062.84. This represents a 0.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Edward Jay Kreps sold 232,500 shares of Confluent stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $30.10, for a total value of $6,998,250.00. Following the completion of the sale, the chief executive officer directly owned 339,367 shares in the company, valued at $10,214,946.70. This represents a 40.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 1,357,664 shares of company stock worth $38,315,446 in the last quarter. Corporate insiders own 13.82% of the company’s stock.

Institutional Trading of Confluent

A number of hedge funds have recently bought and sold shares of CFLT. Optimus Prime Fund Management Co. Ltd. increased its holdings in shares of Confluent by 17.9% in the second quarter. Optimus Prime Fund Management Co. Ltd. now owns 5,070,000 shares of the company’s stock valued at $126,395,000 after purchasing an additional 770,000 shares during the last quarter. AQR Capital Management LLC grew its holdings in Confluent by 3,646.4% in the 3rd quarter. AQR Capital Management LLC now owns 4,904,459 shares of the company’s stock valued at $97,108,000 after buying an additional 4,773,548 shares in the last quarter. Atreides Management LP increased its stake in shares of Confluent by 82.0% in the 2nd quarter. Atreides Management LP now owns 3,012,215 shares of the company’s stock worth $75,095,000 after acquiring an additional 1,357,246 shares during the last quarter. Invesco Ltd. raised its holdings in shares of Confluent by 895.2% during the 3rd quarter. Invesco Ltd. now owns 2,408,170 shares of the company’s stock worth $47,682,000 after acquiring an additional 2,166,196 shares during the period. Finally, ThornTree Capital Partners LP boosted its position in shares of Confluent by 45.0% during the 3rd quarter. ThornTree Capital Partners LP now owns 1,750,817 shares of the company’s stock valued at $34,666,000 after acquiring an additional 543,184 shares during the last quarter. Institutional investors and hedge funds own 78.09% of the company’s stock.

Confluent Company Profile

Confluent, Inc (NASDAQ: CFLT) is a leading provider of an event streaming platform built on Apache Kafka. The company’s flagship offerings include Confluent Platform—a self-managed software solution—and Confluent Cloud, a fully managed service designed to simplify real-time data processing across hybrid and multi-cloud environments. These products enable enterprises to collect, process and distribute high volumes of data in real time, supporting use cases such as fraud detection, supply chain optimization and personalized customer experiences.

Founded in 2014 by Apache Kafka co-creators Jay Kreps, Neha Narkhede and Jun Rao, Confluent has driven the commercialization of Kafka technologies and extended the platform with tools for data integration, stream processing and enterprise-grade security.