Citigroup Cuts Confluent (NASDAQ:CFLT) Price Target to $20.00

Key Points

• Citigroup has reduced Confluent's target price from $30.00 to $20.00, maintaining a "neutral" rating on the stock, which implies a potential upside of 16.18% from its previous close.
• Other analysts have also revised their target prices for Confluent, with ratings ranging from "sell" to "strong buy," reflecting a consensus price target of $27.36 according to MarketBeat.
• Shares of Confluent are currently trading at $17.22, with a negative net margin of 29.27% and a year-over-year revenue increase of 20.1% reported last quarter.

Confluent (NASDAQ:CFLT - Get Free Report) had its target price decreased by Citigroup from $30.00 to $20.00 in a research report issued on Monday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. Citigroup's price target points to a potential upside of 16.18% from the stock's previous close.

Several other analysts have also weighed in on CFLT. DA Davidson lowered their target price on Confluent from $32.00 to $24.00 and set a "buy" rating on the stock in a report on Thursday. Wells Fargo & Company lowered their price objective on shares of Confluent from $30.00 to $27.00 and set an "overweight" rating on the stock in a research note on Thursday. Needham & Company LLC cut their target price on shares of Confluent from $26.00 to $24.00 and set a "buy" rating for the company in a research report on Thursday. Loop Capital lowered their price target on shares of Confluent from $30.00 to $22.00 and set a "hold" rating on the stock in a research report on Wednesday, April 23rd. Finally, Royal Bank Of Canada cut their price objective on Confluent from $28.00 to $25.00 and set an "outperform" rating for the company in a research report on Thursday. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating, nineteen have given a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $27.36.

Confluent Price Performance

Shares of NASDAQ:CFLT traded up $0.02 on Monday, reaching $17.22. 6,079,940 shares of the company were exchanged, compared to its average volume of 6,286,825. The company has a 50-day moving average of $24.34 and a 200-day moving average of $25.35. The company has a current ratio of 3.98, a quick ratio of 3.98 and a debt-to-equity ratio of 1.03. The firm has a market cap of $5.86 billion, a price-to-earnings ratio of -18.33 and a beta of 0.96. Confluent has a 1-year low of $16.56 and a 1-year high of $37.90.

Confluent (NASDAQ:CFLT - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported $0.09 EPS for the quarter, topping analysts' consensus estimates of $0.08 by $0.01. Confluent had a negative net margin of 29.27% and a negative return on equity of 27.34%. The firm had revenue of $282.29 million for the quarter, compared to the consensus estimate of $278.32 million. During the same quarter in the previous year, the firm earned $0.06 earnings per share. The firm's revenue was up 20.1% on a year-over-year basis. Equities analysts forecast that Confluent will post -0.83 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Rohan Sivaram sold 27,710 shares of the company's stock in a transaction on Tuesday, May 20th. The shares were sold at an average price of $21.83, for a total transaction of $604,909.30. Following the completion of the sale, the chief financial officer directly owned 673,693 shares of the company's stock, valued at approximately $14,706,718.19. This represents a 3.95% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Edward Jay Kreps sold 232,500 shares of the stock in a transaction on Thursday, June 5th. The shares were sold at an average price of $24.50, for a total value of $5,696,250.00. Following the completion of the sale, the chief executive officer owned 452,488 shares of the company's stock, valued at approximately $11,085,956. This represents a 33.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 486,669 shares of company stock worth $11,439,593. 13.82% of the stock is owned by company insiders.

Institutional Trading of Confluent

Several large investors have recently bought and sold shares of CFLT. Vanguard Group Inc. grew its holdings in Confluent by 7.2% during the 1st quarter. Vanguard Group Inc. now owns 26,620,150 shares of the company's stock valued at $623,976,000 after purchasing an additional 1,791,588 shares in the last quarter. Altimeter Capital Management LP boosted its position in Confluent by 11.0% in the 1st quarter. Altimeter Capital Management LP now owns 13,042,080 shares of the company's stock valued at $305,706,000 after buying an additional 1,295,710 shares during the last quarter. Champlain Investment Partners LLC grew its stake in shares of Confluent by 0.3% during the first quarter. Champlain Investment Partners LLC now owns 10,862,083 shares of the company's stock valued at $254,607,000 after acquiring an additional 27,329 shares in the last quarter. William Blair Investment Management LLC increased its position in shares of Confluent by 3.8% during the second quarter. William Blair Investment Management LLC now owns 9,639,102 shares of the company's stock worth $240,303,000 after acquiring an additional 356,277 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its stake in shares of Confluent by 13.5% in the first quarter. Price T Rowe Associates Inc. MD now owns 5,510,743 shares of the company's stock worth $129,173,000 after acquiring an additional 654,827 shares in the last quarter. Institutional investors and hedge funds own 78.09% of the company's stock.

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.

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