Confluent (NASDAQ:CFLT) Releases Earnings Results, Beats Estimates By $0.02 EPS

Confluent (NASDAQ:CFLT) issued its quarterly earnings data on Wednesday. The company reported $0.12 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.02, FiscalAI reports. The company had revenue of $314.82 million for the quarter, compared to analysts’ expectations of $308.03 million. Confluent had a negative net margin of 25.31% and a negative return on equity of 23.19%. During the same quarter in the previous year, the firm posted $0.09 earnings per share. Confluent’s revenue for the quarter was up 20.5% on a year-over-year basis.

Confluent Trading Up 0.0%

NASDAQ CFLT opened at $30.54 on Friday. The company has a quick ratio of 4.01, a current ratio of 4.01 and a debt-to-equity ratio of 0.98. Confluent has a 52 week low of $15.64 and a 52 week high of $36.25. The business has a 50 day moving average price of $30.15 and a 200-day moving average price of $24.07. The company has a market cap of $10.68 billion, a price-to-earnings ratio of -35.51 and a beta of 0.95.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on CFLT shares. UBS Group cut shares of Confluent from a “buy” rating to a “neutral” rating and increased their price objective for the stock from $29.00 to $31.00 in a research report on Tuesday, December 9th. FBN Securities reaffirmed an “outperform” rating and set a $28.00 price target on shares of Confluent in a research report on Tuesday, October 28th. Guggenheim lowered Confluent from a “buy” rating to a “hold” rating in a research report on Tuesday, December 9th. Stifel Nicolaus upped their target price on Confluent from $21.00 to $25.00 and gave the company a “hold” rating in a research report on Tuesday, October 28th. Finally, The Goldman Sachs Group raised their target price on Confluent from $21.00 to $24.00 and gave the stock a “neutral” rating in a research note on Tuesday, October 28th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, twenty-eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $28.71.

Insiders Place Their Bets

In other news, CEO Edward Jay Kreps sold 232,500 shares of the 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 of the company’s stock, valued at $10,214,946.70. This represents a 40.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CRO Ban Ryan Norris Mac sold 3,053 shares of the stock in a transaction on Tuesday, December 23rd. The shares were sold at an average price of $29.96, for a total value of $91,467.88. Following the completion of the sale, the executive directly owned 332,679 shares of the company’s stock, valued at $9,967,062.84. The trade was a 0.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,125,164 shares of company stock worth $32,844,721 in the last quarter. Insiders own 9.20% of the company’s stock.

Institutional Investors Weigh In On Confluent

A number of institutional investors have recently added to or reduced their stakes in CFLT. AQR Capital Management LLC raised its stake in shares of Confluent by 3,646.4% during the 3rd quarter. AQR Capital Management LLC now owns 4,904,459 shares of the company’s stock worth $97,108,000 after purchasing an additional 4,773,548 shares during the period. Invesco Ltd. increased its holdings in Confluent by 895.2% during the third quarter. Invesco Ltd. now owns 2,408,170 shares of the company’s stock worth $47,682,000 after buying an additional 2,166,196 shares during the last quarter. Atreides Management LP raised its position in Confluent by 82.0% in the second 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 period. Voloridge Investment Management LLC purchased a new position in Confluent in the third quarter valued at about $15,779,000. Finally, Optimus Prime Fund Management Co. Ltd. grew its position in shares of Confluent by 17.9% during the 2nd quarter. Optimus Prime Fund Management Co. Ltd. now owns 5,070,000 shares of the company’s stock valued at $126,395,000 after acquiring an additional 770,000 shares during the period. 78.09% of the stock is owned by institutional investors.

About Confluent

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.